Bitcoin (BTC) saw another rejection at $ 24,000 overnight on Dec. 24, but data shows that appetite for large buy-ins is only increasing.
As recorded by the on-chain analytics resource CryptoQuant, the institutional exchange Coinbase Pro alone saw two large withdrawals of more than 12,000 BTC ($ 278 million) this week.
Coinbase outflows exceed $ 550 million
As Cointelegraph reported, single large spikes in outflow suggest that a buyer has purchased a large amount of BTC and the proceeds are flowing into a single storage wallet, although this has not been proven.
“Another major Coinbase outflow occurred a few hours ago,” added Ki Young Ju, CEO of CryptoQuant, on Twitter comments.
“Institutional Investors Buy $ BTC.”
In November, miners unlocked block bonuses of just under 28,000 BTC – little more than the total of the two Coinbase Pro transactions. This implicit supply shortage is a central argument for a sustained upward movement in prices.
Grayscale leads institutions vying for BTC supply
The underlying desire to soak up the Bitcoin supply to $ 23,000 is in contrast to external factors influencing market sentiment, particularly around Ripple’s U.S. lawsuit and shifting expectations over the top. Gox rehabilitation procedure.
Concerns that Ripple’s associated altcoin XRP could be virtually no longer tradable thanks to legal action appeared to have triggered significant volatility in Bitcoin over the past 24 hours.
At the same time, the market is waiting for the funds to be distributed to the mountain. Gox’s creditors who, after a six-year hiatus, may be interested in selling some or all of BTC at 2020 prices, adding $ 3.2 billion in additional selling pressure.
Aside from these short-term factors, however, it remains clear that the institutions rate Bitcoin positively overall and new obligations appear almost constantly.
Boom. + $ 500 million in one day https://t.co/L2MnXDCDQB
– Barry Silbert (@BarrySilbert) December 23, 2020
Investment giant Grayscale now controls $ 16.4 billion in assets under management and is adding $ 500 million in a single day, the latest data from Wednesday confirms.