The recent price hikes in the cryptocurrency market have not stopped institutional investors from investing in bitcoin. The latest major transfer of funds from Coinbase to custodial wallets , worth $ 630 million, confirms that organizations continue to accumulate coins.
CryptoQuant CEO Ki Yong Joo has repeatedly highlighted the relationship between the price of bitcoin and organizations using the largest cryptocurrency exchange in the United States, Coinbase, to buy BTC in large quantities.
The examples given by the analyst company did indeed reflect the increase in the value of BTC, with large investors transferring significant quantities of coins to storage addresses.
Last week, Joo predicted that after BTC fell below $ 45,000, the asset would quickly rise above $ 48,000, supported by «institutional-grade buying.»
His prediction turned out to be accurate, since today the main cryptocurrency exceeded the $ 50,000 mark. In addition, the expert noted that institutional investors have withdrawn another significant batch from Coinbase to custody wallets.
CryptoQuant data shows that this time around 12,400 bitcoins were withdrawn, which is roughly $ 632 million at today’s prices.
During the market crash last week, when BTC lost about 25% of its value, there were reports that shortly before the fall, miners moved a significant part of the coins to exchanges and cashed in profits.
The community feared that institutional and retail investors would also join the sale, further pushing the price of the main cryptocurrency further. However, this did not happen.
Data from another monitoring company, Glassnode, show that bitcoin owners have indeed ramped up transfers to crypto exchanges over the last week of February. However, the situation quickly changed and investors withdrew some of their coins from the trading floors.
Looking at the big picture, it is clear that investors are determined to reduce the amount of bitcoins held on exchanges. In the past six months alone, the percentage of BTC on trading platforms has dropped from 14.5% to 12.5%, indicating a strengthening of the hodling strategy.
Tim Draper: Netflix and Amazon will be the next big investors in bitcoin
Streaming service Netflix will acquire the first cryptocurrency as part of its reserve management policy, and online retailer Amazon will add it as a payment option. This is the opinion of Tim Draper, a venture capitalist and digital gold advocate.
In February, Tesla became the first SP 500 company to acquire Bitcoin. Investments amounted to $ 1.5 billion.
“Do you know who is next? This is Netflix. [CEO] Reed Hastings is a creative innovator … I think his company is the obvious Fortune 100 contender , ”Draper suggested.
During the interview, the billionaire admitted the «early» addition of bitcoin as a means of payment by Amazon. He explained that customers of an online retailer have been buying goods indirectly using cryptocurrencies for many years.
In February, it became known that Amazon was looking for developers to create a solution for converting fiat into digital currency.
In one of the Netflix series about the future, cryptocurrencies were used as a means of payment.
Elon Musk recently called Tesla’s investment in the first cryptocurrency «risky enough.» Analysts at Wedbush Securities noted that the value of shares of electric car manufacturers has become highly dependent on the dynamics of the price of digital gold.