Bitcoin (BTC) may be worth less than $40,000, but fresh data shows that demand from large investors is not decreasing at all. Regardless of the price movement of bitcoin, institutional players are accumulating the asset this month.
For Ki Yong Joo, CEO of the online analytics platform CryptoQuant, the institutional purchase of BTC “may become an important narrative again” in the crypto industry.
Coinbase Pro Moves Serious Amounts of BTC
Key cited data from Coinbase Pro, the professional trading arm of the American exchange Coinbase, which confirms that large tranches of BTC continue to leave his books.
These tranches amounted to 30,000 BTC in one day this week, and this event is not isolated: March saw similar behavior.
“30K BTC leaked from Coinbase today,” he noted. Institutional buying may once again become an important narrative because the Executive Order did not create any obstacles.”
US President Joe Biden’s executive order issued last month aimed at exploring various aspects of the cryptocurrency ecosystem did not appear to have deterred large investors expecting further growth.
This week this trend has been evident across all exchanges, and April is currently trying to match March in terms of overall churn.
See Also: Ex-meta Employee Warns About The Threat To Privacy In The Metaverse
The supply cut contrasts with the troubling macroeconomic picture, which continues to put pressure on risky assets, including cryptocurrencies.
Bitcoin’s correlation with stocks, which are themselves dependent on central bank policy, would need to be disrupted for conditions to improve, but analysts say the process will be far from smooth when that happens.
“Eventually, the correlation breaks down for several reasons,” commentator Dylan Leclerc explained earlier this week. My guess is that eventually, the credit system will break down, and volatility will skyrocket. It is followed by BTC, but more due to derivatives traders rather than spot selling. BTC bears will be forced to disappear with each new rally as spot supply continues to be capped.”
Terra Supports Buying Pressure
Meanwhile, the story of the main buyer of the year, the Terra blockchain protocol, continues. The Luna Foundation Guard (LFG), a Terra-affiliated non-profit, has added approximately 2,633 BTC (worth $105.3 million) to its reserves in the last 48 hours.
According to BitInfoCharts, the LFG wallet is currently the 18th largest Bitcoin wallet holding more BTC than Tesla’s corporate treasury appropriation.
The views and opinions expressed here should not be construed as investment advice. Every investment and trading step involves risk; you should do your own research when making a decision.
