Don't worry, Institutions didn't go anywhere...
Some have been speculating that due to the recent large drop in bitcoin that perhaps institutions have slowed down their purchases or perhaps been spooked all together from buying more.
We can see very clearly that is not the case.
Based on data from CryptoQuant, we can see that several large tranches of bitcoin were removed from Coinbase Pro just in the last several hours.
Check it out:
(Source:
)https://twitter.com/mskvsk/status/1365213903404355584/photo/1
- mskvsk
Over 12k bitcoin moved in just the last few hours and roughly 14k moved a few hours prior.
As you can see these large outflows are rather rare with only a handful of them happening this year thus far.
Why the large outflows?
While it's impossible to know for sure why a large amount of bitcoin moved out of CoinbasePro, I think the most likely reason is pretty simple...
To me the most likely reason that bitcoin would leave CoinbasePro is because it was just purchased and moving to cold storage.
While there are other possibilities, that seems far and away the most likely one.
In dollar amounts, those moves were worth roughly $600 million and $700 million respectively.
Could it be corporations buying more?
We know both MSTR and TSLA used Coinbase to fill their corporate bitcoin purchases and wouldn't be shocked if others are doing the same.
Watching the outflows from CoinbasePro is probably the best way to tell before the news breaks that institutions are gobbling up more bitcoin.
So, while the dip was scary we have pretty good evidence that the institutions didn't go anywhere and are using the dip as a buying opportunity.
Stay informed my friends.
-Doc