Bitcoin (BTC), although it may be trading below $40,000, new data suggests that major investors are still keen to purchase Bitcoin.
Ki Young Ju, CEO at CryptoQuant’s on-chain analytics platform CryptoQuant believes that institutional BTC buying is “could become the big story” in the crypto space.
Coinbase Pro moves significant amounts of BTC
Ki highlighted Coinbase Pro figures, the professional trading side of Coinbase’s US exchange Coinbase. These figures confirm that large amounts of BTC are still leaving its books.
These tranches amounted to 30,000 BTC in one day this week. This isn’t an isolated event. March also saw similar behavior.
Coinbase Pro BTC reserves vs. BTC/USD chart. Source: CryptoQuant
He noted that Coinbase had received 30k BTC today.
“Institutional Buys” might be the main narrative once again, as the Executive Order didn’t create any obstacles.
The U.S. executive orders issued last month to examine various aspects of cryptocurrency have not seemed to be deterrents to large-volume investors seeking exposure.
Annotated chart of Bitcoin exchange outflows Source: Ki Young Ju/ Twitter
This trend is evident across exchanges, according to Cointelegraph this week. April currently tries to match March’s overall outflows.
This contrasts with a worrying macro picture that continues to press crypto risk assets, including crypto.
Analysts believe that Bitcoin’s relationship to equities needs to end if conditions are to improve. However, the process is not going to be easy.
Dylan LeClair, a commentator, explained that correlation breaks down eventually – for many reasons.
My guess is that eventually the credit system will collapse and volatility will explode. BTC follows, but it is more due to spot selling and deriv traders than BTC. BTC bears, who are conditioned to lose every rally, will rekt if spot supply continues to limit.”
Terra maintains the buying pressure
The major buyer story for the year, Blockchain protocol Terra continues. Over the past 48 hours, the Luna Foundation Guard (LFG), a non-profit organization attached to Terra has added approximately 2,633 BTC ($105.3 Million) to its reserves.
Related: Watch out for Bitcoin’s price fluctuations as Terra purchases 2.5K BTC to almost match Tesla
Luna Foundation Guard (LFG), a non-profit organization attached to Terra has added approximately 2,633 BTC ($105.3 Million) to its reserves in the last 48 hours.
BitInfoCharts data shows that its wallet is the 18th most popular Bitcoin wallet. It contains more BTC than Tesla’s corporate treasury allocation.
LFG Bitcoin wallet (screenshot). Source: BitInfoChartscom. You should do your research before making any investment or trading decision.