Bitcoin (BTC) earned a new rejection of $ 24,000 overnight on December 24, but data show that the appetite for large deposits is only increasing.
As noted by the online analytics resource CryptoQuant, Coinbase Pro alone exchanged for institutions recorded two major withdrawals of more than 12,000 BTC ($ 278 million) each week.
Coinbase’s outflow exceeds $ 550 million
As Cointelegraph reported, although not proven, individual large outflow jumps suggest that a customer has purchased a large amount of BTC and that revenue is being transferred to a single wallet.
“Another big Coinbase outflow a few hours ago,” Ki Young Ju, CEO of CryptoQuant, added in Twitter comments.
“Institutional investors are buying $ BTC.”
In November, miners unlocked just under 28,000 BTCs in block prizes – barely more than the total of two Coinbase Pro transactions. This implied reduction in supply is a central argument for continued price growth.
Gray tones lead institutions struggling to supply BTC
The underlying desire to suck up the Bitcoin supply to $ 23,000 contrasts with external factors affecting market sentiment, particularly revolving around Ripple’s U.S. lawsuit and shifting expectations around Mt. Gox’s rehabilitation procedure.
Concerns that Ripple’s associated altcoin XRP could become anything but feasible thanks to legal action have caused significant instability in Bitcoin over the past 24 hours.
At the same time, the market is waiting for the distribution of funds on Mt. Gox’s creditors, who after a six-year hiatus may be willing to sell some or all of their BTC at 2020 prices, will result in additional sales pressure of $ 3.2 billion.
However, beyond these short-term factors, it remains clear that the institutions are fighting Bitcoin as a whole, and new commitments are emerging almost constantly.
Boom. + $ 500 million in one day https://t.co/L2MnXDCDQB
– Barry Silbert (@BarrySilbert) December 23, 2020
Investment giant Grayscale now controls assets under management of $ 16.4 billion, adding $ 500 million in one day, according to the latest figures from Wednesday confirms.