Fund flow is a he ratio of coins transfers that involves the exchange to the overall coins transfers network-wide. High values indicate investors are actively using the exchanges. However, we've seen a pattern where fund flow increases, then decreases, and then the Bitcoin price gets squeezed and bounces back upwards. One possible explanation is that the whales intentionally triggered a spike in fund flows by actively trading on-exchange to create a market bottom, and then institutions and other OTC market participants increased their demand because they thought the bottom had been reached. If the whales' efforts were successful in convincing OTC institutions to buy, we would expect to see a sharp decline in fund flows and a further rise in the market, in line with historical patterns.
Written by SignalQuant
