While the bitcoin price struggles to exceed $ 24,000, it remains healthy above $ 23,000. Outlets on popular cryptocurrency exchange Coinbase show that institutions continue to buy BTC.
12,000 BTC exits seen from Coinbase Pro
Chain analytics data firm CryptoQuant has revealed that its professional trading platform Coinbase Pro has traded at least two 12,000 BTC.
These large transactions outside the stock market indicate that institutions are buying Bitcoin. CryptoQuant CEO Ki Young Ju predicted that on social media funds were moved to “surveillance-like wallets” and potentially cold wallets the exchange set up after making over-the-counter deals for customers.
Another big Coinbase outflows a few hours ago.
Institutional investors are buying $BTC.
— Ki Young Ju 주기영 (@ki_young_ju) December 24, 2020
If these were the institutions that bought BTC, the new BTC rate entering the market slowed down as the block reward had halved and the volume became noticeable. In November, miners caught just under 28,000 BTC in block rewards.
This means a supply squeeze that some believe will result in more price action. On top of that, Grayscale Investments, the largest cryptocurrency asset manager, added $ 3.4 billion to its assets under management in one week, bringing the total to $ 16.4 billion.
SEC case changes things for Bitcoin: Mt Gox could also change
Institutional demand for the flagship cryptocurrency contrasts with several factors that negatively affect the market, including a lawsuit filed by the US Securities and Exchange Commission (SEC) against Ripple.
According to The Wall Street Journal, there is a debate in the center of the case whether XRP is a security that should be registered. Since Ripple does not register XRP as a security, the regulator argues that investors do not have enough information and therefore defendants are in an unfair situation.
The market also expects the funds to be distributed to Mt Gox creditors. These creditors, after waiting years to buy their BTC, can sell their funds in the market and close this part of their lives. This may result in the sale of 140,000 BTC in the market and we may encounter large fluctuations.