Bitcoin (BTC) may be trading below $40,000, but new data shows demand from large investors is far from declining.
For Ki Young Ju, CEO of on-chain analytics platform CryptoQuant, institutional BTC buying could be “the big narrative” in the crypto space once more.
Coinbase Pro moves significant amounts of BTC
Ki highlighted figures from Coinbase Pro, the professional trading arm of US exchange Coinbase, confirming that large tranches of BTC continue to leave their books.
These tranches totaled 30,000 BTC in a single day this week, and the event is not an isolated one as similar behavior was seen in March.
“30,000 BTC left Coinbase today,” he noted,
“Institutional buying could be the big story again because the executive order hasn’t created a hurdle.”
Last month’s US executive order aimed at examining various aspects of the cryptocurrency ecosystem hasn’t appeared to act as a deterrent to large-volume investors looking for exposure.
The trend is evident across exchanges, Cointelegraph reported this week, and April is currently trying to match March in terms of total outflows.
The reduction in supply contrasts with a worrying macro picture that continues to weigh on risk assets, including crypto.
Bitcoin’s correlation to stocks, which are themselves at the mercy of central bank policy, must be broken for conditions to improve, but analysts say the process will be far from smooth when it does.
“Correlation eventually breaks down – for a number of reasons,” commented Dylan LeClair explained earlier this week.
My guess: at some point the credit system will collapse and volatility will explode. BTC follows, but more because of derivatives traders rather than spot sales. BTC bears, conditioned to fade any rally, turn rect as spot supply remains constrained.”
Terra keeps the buying pressure going
Meanwhile, the big buyer story of the year, blockchain protocol Terra, continues. Luna Foundation Guard (LFG), the non-profit organization affiliated with Terra, has added around 2,633 BTC ($105.3 million) to its reserves in the past 48 hours.
Related: Bitcoin price levels to watch when Terra buys 2.5k BTC to almost match Tesla
Luna Foundation Guard (LFG), the non-profit organization affiliated with Terra, has added around 2,633 BTC ($105.3 million) to its reserves in the past 48 hours.
According to data from monitoring resource BitInfoCharts, its wallet is now the 18th largest Bitcoin wallet and contains more BTC than Tesla’s corporate treasury.
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https://cointelegraph.com/news/bitcoin-institutional-buying-could-be-big-narrative-again-as-30k-btc-leaves-coinbase Bitcoin Institutional Buying “Could Be Big Narrative Again” As 30,000 BTC Leave Coinbase