Bitcoin (BTC) sees a new type of deal above $ 20,000 as indigenous whales continue to sell their coins to larger institutional buyers.
Data from online analysis service CryptoQuant shows that while long-term investors flock to BTC with profits, consumer demand continues to exceed them.
Analyst: Bitcoin whales are “small” compared to new buyers
As BTC / USD continues to explore new heights, “native” whales are starting to look like plankton as organizations line up to purchase large quantities.
Capital outflows hit annual highs just hours before breaking $ 20,000 for the first time in history, according to CryptoQuant data from exchanges. The cumulative shortage of BTC in the stock markets and institutional purchases on the OTC exchanges paved the way for the struggle for continuity of supply, and price increases are the only logical solution.
“I repeat… an impending liquidity crisis,” summed up the current situation of Danny Scott, CEO of Queen’s Corner UK.
Even CryptoQuant CEO Ki Yong Joo, who said he had reduced Bitcoin by $ 20,800, admitted he was surprised by the whale’s activity.
“Next time, let’s focus on the bigger whales,” he tweeted as the market continued to absorb big sales.
“And the whales were small whales.”
Graph of Net Bitcoin exchange flowing from the beginning of the year to today. Source: CryptoQuant
Key then pointed to what he called a “massive” flow of money from Coinbase as evidence of corporate OTC activity. Current BTC reserves on stock exchanges are at their lowest level since November 2018.
Coinbase’s bulky fiddles usually seem to go to the new cold storage / OTC market, which has 6,000-8,000 BTC. #Greyscale uses #GenesisTrading to buy Bitcoins and #GenesisTrading uses Coinbase Custody, as written next to the tagged graph.
The asset manager sees no end to purchases
Institutional adoption is increasing very rapidly this month, Cointelegraph says.
In addition to Guggenheim’s price estimate of $ 400,000, the One River Asset Management hedge fund confirmed Wednesday that it plans to raise its stake in Bitcoin and Ether (ETH) to more than $ 1 billion by 2021.
“This new asset class will be passed on to the generations,” Bloomberg CEO Eric Peters was quoted as saying.
The billion-dollar goal immediately puts One River against the largest crypto firms, including Grayscale, which this week acquired a total of more than $ 13 billion in assets.