Bitcoin on-chain data suggests institutions are displacing hodlers.

On-chain measurements show an increase in Bitcoin transfers to “whales wallets” and “sophisticated passive buying” on spot markets.

“Sophisticated passive buying” on Bitcoin (BTC) spot exchanges coincides with the trend of BTC exiting exchanges to cold storage.

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The price of Bitcoin has gone up a lot in the last two weeks, according to data from a researcher called Willy Woo. This is because more people who own Bitcoin are selling their coins.

However, BTC’s price strength meant that there was a lot of buying pressure coming from somewhere else. As reports this week, so-called “Bitcoin whales” are buying BTC at these prices.

“This selling is in contrast to data from exchanges that show sophisticated passive buying on spot exchanges and the movement of coins to whale-owned wallets,” wrote Woo, who added:

“This view is supported by coins moving away from exchanges to cold storage. Meanwhile, whales who hold more than 1,000 BTC ($45m) are accumulating. This hints at institutional money deploying capital.”

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This is even though the price of Bitcoin was going down going into the weekend. Ecoinometrics, an on-chain data resource, has also noticed a rise in “whale” addresses that control 1,000 to 10,000 BTC.

BTC price goals

An OKEx researcher said Bitcoin would need more time to stabilise because of its recent rejections and break from its 20-day moving average, which is shown in the chart below. It’s still likely that regaining $46,000 would likely make BTC’s price go up to $50,000 the next time.

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People who own Bitcoin and people who want to invest in it have recently been selling. Woo said that because of this, $33,000 is a good place for Bitcoin. As $40,000 is still an important level to hold, and $46,000-$48,000 is still a strong area for the bulls to try to break through.

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

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