Regardless of the Bitcoin price movement this month, institutional investors are putting their money where their mouth is.
While Bitcoin (BTC) is on the verge of falling below $40,000, new data indicates that demand from institutional investors is far from declining.
According to Ki Young Ju, CEO of on-chain analytics platform CryptoQuant, institutional BTC buying “could be the big narrative” once again in the crypto space.
Coinbase Pro facilitates the transfer of substantial amounts of Bitcoin.
Ki cited data from Coinbase Pro, the professional trading arm of Coinbase in the United States, which confirms that large tranches of BTC continue to leave the exchange’s books.
These tranches totaled 30,000 BTC in a single day this week, and the event is not unique; similar behaviour occurred in March.
“Today, 30k BTC flowed out of Coinbase,” he noted.
“Institutional acquisitions may once again be the dominant narrative, as the Executive Order obliterated any impediment.”
The United States’ executive order issued last month to investigate various aspects of the cryptocurrency ecosystem appears to have had little effect on large-volume investors seeking exposure.
The trend is evident across exchanges, and April is currently attempting to match March’s overall outflows.
The decrease in supply contrasts with a concerning macroeconomic backdrop that continues to put pressure on risk assets, including crypto.
Bitcoin’s correlation with equities, which are also subject to central bank policy, must be broken in order for conditions to improve, but analysts predict that the process will be anything but smooth.
“Eventually, correlation breaks down for a variety of reasons,” commentator Dylan LeClair explained earlier this week.
My guess is that the credit system will eventually fail and volatility will explode. BTC follows, but primarily due to derivative traders, rather than spot sellers. As spot supply continues to be constrained, BTC bears conditioned to fade every rally get rekt.”
Terra maintains its purchasing pressure.
Meanwhile, the year’s biggest buyer story, Terra’s Blockchain protocol, continues. Over the last 48 hours, the Luna Foundation Guard (LFG), Terra’s nonprofit organisation, has added approximately 2,633 BTC ($105.3 million) to its reserves.
Over the last 48 hours, the Luna Foundation Guard (LFG), Terra’s nonprofit organisation, has added approximately 2,633 BTC ($105.3 million) to its reserves.
According to data from monitoring service BitInfoCharts, its wallet has surpassed Tesla’s corporate treasury allocation to become the 18th largest Bitcoin wallet.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.