Institutional investment in bitcoin (BTC) is back, says analyst Willy Woo in his latest report on the market for the first of the cryptocurrencies. In the last three days of last week there was a significant amount of purchases spot or bitcoin spot, which appears to be institutional money, observes the specialist on his new reading on-chain.
“Many coins moved from exchanges into cold storage. This volume of BTC coming out of exchanges is now at record levels again,” adds Woo.
From your point of view, demand from major investors for BTC is anything but declining. This is contrary to what was happening in previous weeks when public and private institutions seemed to be turning away from bitcoin as the cryptocurrency ecosystem has been rocked by geopolitical factors.
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Institutional whales are now back in accumulation mode, Woo notes, showing a chart showing the increased demand for big bitcoin hodlers that they are staying in power of all currencies that are leaving the exchanges.
Woo adds that, although Bitcoin spot buying has returned to the market by large institutionsthis is not something that has happened with the demand of the futures markets.
“Longer term, it looks like the market is in an extended accumulation band,” Woo notes, noting that the uptick in spot buying combined with further accumulation should boost bitcoin price.
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What will happen to the price of bitcoin?
The exit of bitcoin from the exchanges is a bullish sign, taking into account that the price of the pioneer of the cryptocurrency is the result of supply and demand. As soon as a big amount of supply continually flows into cold wallets, the price of BTC may start to rise.
Large institutions have been buying bitcoin, such is the case of professional investment funds and hedge funds, but also insurers and pension funds.
Agreeing with Willy Woo, the CEO of CryptoQuant, Ki Young Ju, He showed a graph a couple of days ago on Twitter. In it he reveals that 30,000 BTC was leaving Coinbase Pro, an indication that big companies like Tesla or MicroStrategy may be buying.
That institutions are now more willing to buy bitcoin coincides with signals from the Joe Biden administration that regulation will remain crypto friendly. It has not only been suggested in the issuance of the long-awaited executive order, but even because of how the Secretary of the Treasury highlighted the work of Satoshi Nakamoto, as CriptoNoticias has recently reported.
In any case, to verify whether these large movements of bitcoin leaving the exchanges correspond to institutional purchases, we will have to wait until the end of the second quarter of the yearwhen public companies disclose their balance sheets.