Regardless of Bitcoin's price movements, institutional investors are putting their money where their mouth is this month.
Bitcoin (BTC) may be approaching $40,000, but new data shows that demand from major investors is far from declining.
According to Ki Young Ju, CEO of on-chain analytics platform CryptoQuant, institutional BTC purchases "could be the big story" in the crypto space once more.
Coinbase Pro moves a significant amount of BTC
Ki cited data from Coinbase Pro, the professional trading arm of the US exchange Coinbase, which show that large amounts of BTC are still leaving the company's books.
Those tranches totaled 30,000 BTC in a single day this week, and the occurrence is not an isolated one; similar behavior was observed in March.
"Institutional buys might be the big narrative again because the Executive Order did not create any hurdle.”
The United States' executive order issued last month to investigate various aspects of the cryptocurrency ecosystem appears to have had no effect on large-volume investors looking for exposure.
As MKT reported this week, the trend is visible across exchanges, and April is currently attempting to match March in terms of overall outflows.
The decrease in supply contrasts with a troubling macro picture that continues to put pressure on risk assets, including cryptocurrency.
Bitcoin's correlation to equities, which are subject to central bank policy, must break in order for conditions to improve, but analysts predict that the process will be anything but smooth.
"Correlation breaks eventually - for a variety of reasons," said commentator Dylan LeClair earlier this week.
My guess: Eventually credit system breaks and volatility explodes. BTC follows but more because of deriv traders and not spot selling. BTC bears conditioned to fade every rally get rekt as spot supply continues to constrain."
DISCLOSURE
The author's or anyone else's views or opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading in crypto assets carries a financial risk.
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