CryptoQuant, an analytics firm, recorded large Bitcoin outflows from Coinbase, an American exchange oriented toward institutional investors, during a decline from the highs.
On the evening of February 24, 13,390 BTC were sent from the platform at a price around $48,900; the next day — 12,390 at around $48,200.
Another significant Coinbase outflows at 48k. US institutional investors are still buying $BTC.
I think the major reason for this drop is the jittering macro environment like the 10-year Treasury note, not whale deposits, miner selling, and lack of institutional demand. https://t.co/wzwkwMhJWx pic.twitter.com/PsQEBqHH2L
— Ki Young Ju 주기영 (@ki_young_ju) February 26, 2021
CryptoQuant CEO Ki Young Ju says these were purchases of digital gold by large players during the decline, conducted on the over-the-counter market.
“This is the strongest bull signal I have ever seen,” he noted.
Ki Young Ju attributes the market pullback not to waning institutional interest but to the negative macroeconomic environment for Bitcoin:
“I think the main reason for the drop is the unstable macroeconomic environment, such as the 10-year Treasuries, not whale deposits, miner selling, and the lack of institutional demand.”
On February 26, Coinbase quotes fell to $44,150. At the time of writing, the asset was trading around $46,900.
Data: TradingView.
In light of this, Glassnode specialists pointed to the negative premium of the Grayscale Bitcoin Trust (GBTC) — traditionally popular among large players as an investment vehicle for Bitcoin.
$GBTC closed at a -3.77% discount yesterday. #Bitcoin
Chart: https://t.co/Qc0vs7I9e3 pic.twitter.com/PsQEBqHH2L
— glassnode (@glassnode) February 26, 2021
Earlier, MicroStrategy disclosed that it had acquired around 19,452 BTC for about $1.026 billion, at an average price of roughly $52,765 per coin.
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