NewsletterInstitutional Demand for Bitcoin (BTC) Continues, Gradual Recovery Expected
Late Thursday, February 26, the Bitcoin (BTC) price crashed for the second time in a week tanking below $46K levels in a market-wide sell-off. As CoinGape reported, the BTC price crash came as investors resolved to profit-booking in risky-assets after the surge in the U.S. bond yields.
However, it seems that the institutional demand for Bitcoin (BTC) continues as the BTC price remains under pressure. The Bitcoin liquid supply on exchanges continues to sink lower while demand continues to increase on the other hand. During Thursday’s correction, nearly 13K Bitcoins were moved out of Coinbase with most of the supply reportedly going to cold storage.
CryptoQuant CEO Ki-Young Ju has pointed that the Coinbase Premium has turned positive indicating that institutions are buying over the Coinbase Pro platform. Coinbase Premium is “the gap between Coinbase Pro price(USD pair) and Binance price(USDT pair) which indicates a strong spot buying pressure from Coinbase when the premium is high”.
Coinbase premium turned to positive.
They're coming… https://t.co/HMbkJXT0H3 pic.twitter.com/4Y54yhY1BS
— Ki Young Ju 주기영 (@ki_young_ju) February 26, 2021
Based on this scenario, Young adds:
“I think it will eventually go above 48k which is the institutional buying level, so I bought more $BTC here at 46k. Not sure about short-term price moving tho”.
Bitcoin Price Recovery Likely Ahead
Another popular crypto analyst Joseph Young mentions some key pointers for the Bitcoin price recovery.
I'm expecting a gradual Bitcoin recovery.
– Coinbase premium consistently positive
– Miners sold a lot of Bitcoin (peaked selling pressure)
– Futures funding rates completely resetSome more stablecoin inflows and it would be more optimistic.
— Joseph Young (@iamjosephyoung) February 26, 2021
Over the last week, some big players made the most of the Bitcoin price dip. Canada’s Purpose Bitcoin ETF, Squaare Inc and Microstrategy scooped up some major supplies at the lower price. The Canadian Bitcoin ETF has over 10,000 Bitcoins in assets under management (AUM) worth nearly half-a-billion dollars.
Another interesting report shows that as the institutional activity kicked in during the last quarter of 2020, Coibase accounted for most of its trade.
Coinbase says it’s executed “nine and ten figure trades for some of the largest institutions in the world.”
62% of Coinbase trading volume also came from institutions in 2020. Huge. pic.twitter.com/ERePv0JTLL
— Bloqport (@Bloqport) February 26, 2021
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- Trump Family Loses Over $1B as Crypto Investments In Multiple Holdings Crashes
- Tom Lee’s Bitmine Immersion Buys $82M in Ethereum, BMNR Stock Jumps
- Crypto Market Rebounds Ahead of Key U.S. PPI, Jobless Claims, and Fed Inflation Reports
- JPMorgan Faces Heavy Backlash from Grant Cardone, Jack Mallers, Max Keiser, Other Bitcoin Advocates
- Expert Projects $30M Volume for Franklin Templeton XRP ETF as Trading Begins Today
- Hedera Price Set for Explosive 30% Rally as Bulls Trigger Breakout
- BTC Price Prediction: Bitcoin Crosses $86k, Is a Drop Over?
- Here’s Why XRP Price Will Hit $3 This Week
- Zcash Price Soars 10% as OKX Eyes ZEC Relisting
- WLFI Price Soars 17%: What’s Fueling the Surge?
- Dogecoin Price Eyes $0.2 Rally Ahead of Grayscale’s NYSE ETF Debut on November 24
