US$500 million in Bitcoin leaves Coinbase as institutions buy up more than miners can sell
The data shows that large capitals continue to buy up the available supply of Bitcoin despite the short-term downward signals.
Bitcoin (BTC) experienced a further rejection of $24,000 during the night of December 24, but the data shows that the Bitcoin Superstar appetite for large purchases is only increasing.
As recorded by the CryptoQuant chain analysis resource, the institution-focused exchange, Coinbase Pro, only had large withdrawals of more than 12,000 BTCs ($278 million) each this week.
Coinbase’s withdrawals exceed $550 million
As reported by Cointelegraph, although unproven, the large individual exits suggest that a buyer has acquired a large amount of BTC and the proceeds are being moved into a single storage wallet.
Bitwise disposes of its XRP position in SEC suit against Ripple
„Another great departure from Coinbase a few hours ago,“ Ki Young Ju, CEO of CryptoQuant, said on Twitter.
„Institutional investors are buying $BTC.
Coinbase Pro Exchange exit flow chart. Source: CryptoQuant
Bitcoin’s dominance reaches an annual peak in the midst of massive XRP sales as its price slowly returns to $24,000
In November, the miners unlocked just under 28,000 BTC in block rewards, barely more than the sum total of the two Coinbase Pro transactions. This implied supply-side contraction is a central argument for continued upward price action.
Grayscale leads institutions competing to supply BTC
The underlying desire to absorb the $23,000 supply of Bitcoin contrasts with external factors influencing market sentiment, mainly around demand for Ripple in the US and the changing expectations about the Mt.Gox rehabilitation project.
Bearish alert for Bitcoin price: Mt Gox could release 140,000 BTC into the market for the first time
Concerns that the altcoin XRP associated with Ripple could become almost non-transferable through legal action seemed to cause considerable volatility in Bitcoin over the last 24 hours.
At the same time, the market is awaiting the distribution of funds to Mt. Gox’s creditors, who after a six-year hiatus may be interested in selling some or all of their BTCs at 2020 prices, creating additional selling pressure of $3.2 billion.
However, beyond these short term factors, it is clear that institutions are optimistic about Bitcoin as a whole, with new commitments emerging almost constantly.
Investment firm Grayscale now controls $16.4 billion in assets under management, adding $500 million in a single day, its latest data Wednesday confirmed.