Institutional 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
- Breaking: Ripple Partners With Bahrain’s Fintech Bay in Push for RLUSD Adoption
- XRP News: Why Whales Sold 440M Coins in a Month Despite ETF Launch Buzz
- Just In: DeFi Dev Corp Launches Japan’s First Solana Treasury Company, SOL Price Reacts
- Pi Network Mainnet to Get Major Upgrade in Q4, Says Expert
- Bitwise Solana ETF to Launch This Week as It Amends Staking, Fees? Bloomberg Weighs In
- Bitcoin Price Prediction as US Govt. Shutdown Extends- What’s Next for BTC?
- Solana Price Megaphone Points to a Parabolic Move as SOL Treasuries Near $3B
- XRP Price Prediction Amid ETF Approval Roadblock as Analyst Warns of $2.72 Dip
- Binance Coin Price Prediction If It Surpasses Bitcoin Marketcap— Is $3000 Possible in 2025?
- ASTER vs HYPE Price Analysis – Which Perp DEX Token Looks Poised to Dominate Q4 Performance?
- Ethereum Price Could Soar to $6,500 as BlackRock’s ETF Nears $20B Milestone
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.
