Bitcoin (BTC) may be heading below $40,000, but new data shows that demand from major investors is only dwindling. With 30,000 BTC leaving Coinbase, the institutional BTC purchase for Ki Young Ju, CEO of on-chain analytics platform CryptoQuant, could once again be “the grand narrative” in the crypto space.
Significant Bitcoin exits from Coinbase Pro
Ki Young Ju confirmed from Coinbase Pro, the professional trading branch of United States exchange Coinbase, that large BTC tranches continue to leave their ledgers. These tranches totaled 30,000 BTC in a single day this week, and the event is not an isolated incident as it saw similar behavior in March.
Coinbase Pro BTC reserves and BTC chart / Source: CryptoQuant Ki Young Ju stated that 30,000 BTC came out of Coinbase today and said, “Corporate acquisitions can be the big story again because the Executive Order did not create any obstacles,” he said.
As we have covered in the news of Cryptokoin.com, President of the United States Joe Biden’s executive decision last month, designed to explore various aspects of the cryptocurrency ecosystem, has apparently not deterred large-volume investors from taking risks.
Bitcoin exchange explanatory chart releases / Source: Ki Young Ju / Twitter Although some users on Twitter stated that Bitcoin exits may be due to withdrawals to cold wallets, Ki Young Ju said that this is exactly the truth. Expressing that it does not reflect the data, he said:
Some of the BTCs were sent to cold wallets. However, this does not make up the bulk of the output. It is also possible that it was transferred to Coinbase’s custodian wallets to be used in over-the-counter (OTC) deals at the request of institutional companies.
The trend is evident across exchanges and April is currently trying to match March in terms of overall outflows. The decrease in supply contrasts with a disturbing macro picture that continues to put pressure on risk assets, including crypto.
Bitcoin’s correlation with stocks is at the mercy of central bank policy, needs to be broken for conditions to improve, but analysts say that once that happens, the process will go smoothly. The leading crypto was trading at $40,434 with an increase of 1.32% on a daily basis at the time of writing, after the sharp decline experienced yesterday.
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