Bitcoin (BTC) might be heading under $40,000 but some new market data indicates that demand from the major investors is not decreasing. For the CEO of on-chain analytics platform CryptoQuant, Ki Young Ju, institutional bitcoin buying “could be the big narrative” in the cryptocurrency sector once more.
Irrespective of the bitcoin price action, institutional players are now putting their money where their mouth is in April.
Coinbase Pro Sees Bitcoin Leaving Its Books
Ki Young Ju referred to the figures published by Coinbase Pro, the professional trading platform linked to the United States exchange Coinbase. These figures confirm that huge tranches of BTC continue to leave its platform. These tranches reached 30,000 BTC in one day earlier this week, and the event is not isolated, with March recording a similar behavior among the huge investors.
He noted:
“30k BTC flowed out from Coinbase today. Institutional buys might be the big narrative again because the Executive Order did not create any hurdle.”
March’s United States executive order, designed to help in investigating different aspects of the crypto industry, apparently has not worked as a deterrent to huge-volume investors looking to gain some exposure in the crypto and bitcoin markets.
The trend seems to be the same across all exchanges, based on reports published earlier in the week. For now, April is trying to match March in terms of the general outflows. This drop in supply contrasts with a worrying macro outlook that continues to pressure risk assets like cryptos.
BTC’s correlation to equities is at the mercy of central bank policy. Hence, the correlation has to break for conditions to improve. Nevertheless, analysts and market commentators say that the process will not be smooth when it happens. One commentator, Dylan LeClair, explained earlier this week:
Buy Bitcoin Now“Correlation breaks eventually – for multiple reasons.”
“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.”
Terra Maintains The Buying Pressure
In the meantime, the major buyer story of the year undeniably goes to Blockchain protocol Terra. The nonprofit organization attached to Terra, Luna Foundation Guard (LFG), has added about 2,633 BTC ($105.3 million) to its reserves in the last 48 hours.
Based on the data acquired from the monitoring resource platform BitInfoCharts, its wallet is now the 18th biggest Bitcoin wallet, having more Bitcoin than Tesla’s corporate treasury allocation.
