Big money is still scooping up the available Bitcoin supply despite near-term bearish signals, according to some reports. BTC faced fresh rejection at $24,000 overnight on Dec. 24, but data shows that appetite for big buy-ins is only rising. As recorded by on-chain analytics resource CryptoQuant, institution-focused exchange Coinbase Pro alone faced two large outflows of more than 12,000 BTC ($278 million) each this week.
Coinbase outflows top $550 million in BTC
As previously reported, while not proven, single large outflow spikes suggest that somebody has bought a large amount of the flagship cryptocurrency and the proceeds are being moved to a single storage wallet.
“Another big Coinbase outflows a few hours ago,” Ki Young Ju, CEO of CryptoQuant, added in Twitter comments.
“Institutional investors are buying $BTC.”
In November, Bitcoin miners unlocked just under 28,000 BTC in block rewards —more than the sum total of the two Coinbase Pro transactions. This implied supply squeeze forms a central argument for continued upward price momentum.
Grayscale leads institutions vying for BTC supply
Underlying desire to suck up the BTC supply at $23,000 contrasts with external factors influencing market sentiment, notably revolving around Ripple’s U.S. lawsuit and rising the expectations over the Mt. Gox rehabilitation proceedings.
At the same time, the market is awaiting the distribution of funds to Mt. Gox’s creditors, who after a six-year hiatus may well be keen to sell some or all of their bitcoin assets at 2020 prices, resulting in $3.2 billion of additional selling pressure.
Beyond these short-term factors, however, it is clear that institutions are bullish on Bitcoin as a whole, with fresh commitments surfacing almost constantly.
Investment giant Grayscale now owns $16.4 billion in assets under management, adding $500 million in a single day, its latest data from Wednesday shows.