Bitcoin (BTC) saw a fresh setback at $ 24,000 overnight on Dec. 24, but data shows that appetite for a big buy-in is only increasing.
As documented by the analytics resource on the CryptoQuant chain, Coinbase Pro, an institution-only exchange, saw two big pulls of more than 12,000 BTC ($ 278 million) this week.
Coinbase is a top $ 550 million outflow
As Cointelegraph reported, though not proven, single large outflow spikes suggest that a buyer has purchased a large amount of BTC and profits are shifted to a single storage wallet.
“Another big Coinbase outflow a few hours ago,” said Ki Young Ju, CEO of CryptoQuant, added in Twitter comments.
“Institutional investors buy $ BTC.”
In November, miners unlocked just under 28,000 BTC in block prizes – barely more than the total of the two Coinbase Pro transactions. This implicit supply squeeze forms a central argument for continuing to operate prices.
Grayscale leads organizations competing for BTC supply
The underlying desire to suck up the Bitcoin supply at $ 23,000 contrasts with external factors that influence market sentiment, notably revolving around the US Ripple lawsuit and changing expectations over the Mt. Gox recovery cases.
There seemed to be concerns that Ripple’s related altcoin XRP might become everything but can’t be traded thanks to legal action to fuel significant volatility in Bitcoin over the past 24 hours.
At the same time, the market awaits the distribution of funds to Mt. Gox creditors, who after a six-year hiatus might be looking to sell some or all of their BTC at 2020 prices, resulting in $ 3.2 billion of additional sales pressure.
Beyond these short-term factors, however, it remains clear that institutions are bullish on Bitcoin as a whole, with fresh commitments almost constantly surfacing.
Boost. + $ 500 million in one day https://t.co/L2MnXDCDQB
– Barry Silbert (@BarrySilbert) December 23, 2020
Grayscale, an investment giant, now manages $ 16.4 billion in assets under management, adding $ 500 million in one day, its latest data as of Wednesday. confirms.