Bitcoin institutional buying ‘could be big narrative again’ as 30K BTC leaves Coinbase

Bitcoin may be heading under $40,000, but fresh data shows that demand from major investors is anything but decreasing.

Ki Young Ju, CEO of on-chain analytics platform CryptoQuant, says that institutional BTC buying “might be the big narrative” in the crypto space once more.

Ki highlighted figures from Coinbase Pro, the professional trading offshoot of United States exchange Coinbase, that confirm that large tranches of BTC continue to leave its books.

Those tranches totaled 30,000 BTC in a single day this week, and the event is not an isolated one, with similar behavior in March.

“Institutional buys might be the big narrative again because the Executive Order did not create any hurdle.”

Last month’s executive order from United States President Joe Biden, designed to investigate various aspects of the cryptocurrency ecosystem, has seemingly not deterred large-volume investors looking for exposure.

The trend is apparent across exchanges, and April is currently attempting to match March in terms of overall outflows. The reduction in supply contrasts with a troubling macro picture that continues to pressure risk assets, including crypto. Bitcoin’s correlation to equities, themselves at the mercy of central bank policy, needs to break in order for conditions to improve, but analysts say that the process will be anything but smooth when it happens.

“Correlation breaks eventually — for multiple reasons,” commentator Dylan LeClair explained earlier this week.

“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.”

Source: Cointelegraph.com