Recently, the research agency Glassnode to the outside world that the data they have collected gives rise to a suspicion that large institutional investors are bitcoin (BTC) have been hitting lately.
Now the data analysis company CryptoQuant is also coming met data that confirms this phenomenon. The company states that institutional investors are widely interested in the largest cryptocurrency at the moment.
A repeat of the last quarter of 2020
According to CryptoQuant, the supply of bitcoin on major exchanges is at its lowest point since before the major crypto crash of mid-May this year. Exchanges currently hold about 2.44 million bitcoins.
Derivatives exchanges in particular are seeing their supply of bitcoin sharply diminish. Which, according to CryptoQuant, is comparable to the trend that could be observed at the end of 2020.
Normally, the supply of bitcoin rises on such exchanges right during a bull run. A sharp drop on derivatives exchanges was only noticeable at the very beginning of the year run to the bitcoin price of $64,500.
According to cryptoanalyst Will Clemente, it is clear: Major players have been stocking up quite a bit lately and thus the supply on the exchanges has become smaller.
Big money has been buying. Since May 19th, entities with 10K-100K BTC have added +269,450 to their holdings. ($12.1B)
These entities have between $450M-$4.5B of their capital allocated to Bitcoin. pic.twitter.com/Sv1xZfUukC
— Will Clemente (@WClementeIII) August 10, 2021
Phase of accumulation
It appears that large institutional investors are not deterred by the volatility of the course and the bad news that hung like a dark cloud over the crypto markets for a while.
These investors have bought so much bitcoin that the supply on exchanges has plummeted. This supply is now at levels not seen for months.
The signals at the moment are downright good. However, these signals are of course no guarantee for the future. Nobody has a crystal ball and therefore we have to wait and see what the price of bitcoin will show in the coming months.
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