Institutionals’ voracious appetite for Bitcoin (BTC) will eventually get the better of the market if they keep up the current pressure. These investors continue to buy the asset massively resulting in an unusual transaction on Coinbase Pro. The exchange has indeed experienced two withdrawals of more than 12,000 BTC each that’s a total equivalent to just over half a billion dollars.
Total Bitcoin mined in November just barely higher than Coinbase exits
The past week has seen relatively high spikes in the market that appear to have been caused by a single player. Although his identity is not known at the moment, the latter would have converged the entire amount of BTC purchased into a single storage wallet. The total in question would correspond to the two big Bitcoin exits that Coinbase Pro experienced as revealed on Twitter the CEO of CryptoQuant Ki Young Ju.
To better realize the importance of this double operation, it is essential to take a look at the asset mining figures. Indeed, the month of November will have allowed miners to generate just under 28,000 BTC in rewards. This total, although not negligible after the halving that occurred a little earlier only slightly exceeds the total sum of the two Coinbase Pro transactions. This scenario, which looks like a tightening of Bitcoin’s supply, is moreover well received within the community which sees it a favorable sign for the continuation of the bull cycle.
BTC supply is the subject of a battle between institutions
Besides the impending trial against Ripple, expectations relating to the rehabilitation procedure of Mt Gox are external factors that can influence the volatility of bitcoin. On the one hand there is the fear that the altcoin XRP will no longer be tradable at the end of the trial. Regarding the second point, the market awaits the distribution of funds to the creditors of Mt Gox, the latter being able to decide to liquidate all or part of their BTC. An outcome that is quite possible after 6 years of waiting Especially since Bitcoin prices have never been higher.
Taking into account the current value of the asset, it is therefore $ 3.2 billion in additional selling pressure that would hit the market. All these factors do not seem, however, to calm the enthusiasm of the remaining institutions. on the lookout for the slightest opportunity. Institutional investment specialist, Grayscale now controls $ 16.4 billion in assets of which more than 85% dedicated to Bitcoin. The fund recently recorded an inflow of assets estimated at $ 500 million in a single day, proof of the appetite of institutional investors.
After years of observation, institutions are therefore determined to buy all Bitcoins available on the market regardless of their value and the factors that affect it. Until we see where all this frenzy takes them, Coinbase is about to go public.