Ki Young Ju, the CEO of CryptoQuant, has revealed that 13,000 units of leading crypto asset, Bitcoin, were moved from Coinbase to a cold storage earlier today. According to Young Ju, the Bitcoins were purchased by institutional investors who bought the dip of the coin when it was still trading around $48,000.
Another significant Coinbase outflows at 48k. US institutional investors are still buying $BTC.
I think the major reason for this drop is the jittering macro environment like the 10-year Treasury note, not whale deposits, miner selling, and lack of institutional demand. https://t.co/wzwkwMhJWx pic.twitter.com/1uEEF8SX5Q
— Ki Young Ju 주기영 (@ki_young_ju) February 26, 2021
The purchased Bitcoin was worth a whopping $624 million and it reinforces the belief in the digital currency among institutional investors who have played a role in helping the coin to new heights. However, in recent weeks, Bitcoin price has been trading sideways and the asset was able to get to the $45k mark after a dip.
CryptoQuant CEO noted that Bitcoin’s drop in price could be tied to a sudden drop in demand by large investors and other macro factors like the 10-years old Treasury note.
Notably, in the previous week, we saw Square purchase more BTCs worth around $170 million, and we also saw Microstrategy make a statement of purpose with its over $1 billion purchase of the asset. Not forgetting that Tesla and other major institutions also made positive moves towards the crypto asset this month. As time goes, it is expected that there would be more influx of institutional investors which would help to keep the value of the digital coin high.