TL;DR Breakdown
- Bitcoin price rises as institutional investors purchase 13,000 BTC.
- The purchased BTC was moved to cold storage.
- Coinbase premium rise indicates a high buying pressure, CryptoQuant CEO, Young.
Institutional investors purchase more BTC
There seems to be some optimism for BTC even after the price traded around $45k yesterday. CryptoQuant CEO, Ki Young Ju, revealed that about 13,000 BTC was transferred from Coinbaseto cold storage today. The purchase was made by institutional investors who bought the dip on Bitcoin when it was still trading at $48,000.
The total Bitcoins purchased by the investors was worth $624 million. Young added that the major reason for the recent BTC drop is due to some macro factors like the 10-year Treasury note, and drop in demand by large investors.
Institutional investors buying BTC causes the price to rise
However, the bulls are starting to take charge again as Bitcoin has made some advancements. According to Young, this is due to institutional Investors buying 13,000 BTC on Friday. Currently, BTC is now trading above $46,000.
The purchased BTC was transferred from Coinbase to cold storage wallets. Right now, Bitcoin has retraced and Hedge funds are still buying more BTC. Young revealed that Coinbasepremium has risen, which indicates a strong buying pressure.
Some days ago, Coinbase announced its S-1 filings with the SEC for a direct listing on NASDAQ. As a result, the pre-IPO shares of the exchange surged. This means that the shares of the company will be traded on NASDAQ with the ticker COIN. In the company’s S-1 filing, it stated Nakamoto as a risk factor.
The company had earlier suspended the trading of XRP due to its lawsuit with the SEC. Right now, the company is valued at $100 billion. The company also revealed that it was an early investor of Bitcoin and Ethereum.
