Major investors look to be accumulating bitcoin at relatively bargain prices within the wake of the crypto’s earlier pullback.
That’s the suggestion of outflows of the crypto asset from institution-focused Coinbase Pro exchange, that rose to over 13k BTC [+0.35%], worth roughly $650 Mln, earlier on Wednesday. The figure represents the most important movement of bitcoin off the exchange in three weeks, consistent with data shared by the blockchain analytics firm CryptoQuant.
“The outflow visited multiple custody wallets, citing United States major institutional investors are still purchasing bitcoin at the dip,” Ki-Young Ju, CEO of CryptoQuant, added. “I think it’s a bullish signal.”
The exchange’s custody wallets are directly integrated with its OTC desk. Institutions typically transact OTC to avoid influencing commodity exchange prices. Hence, outflows from Coinbase Pro which find yourself in its cold wallets for custody are taken to represent institutional activity.
The latest devour in outflows may be a sign that institutions remain undeterred by the recent price pullback and are confident about crypto asset’s long-term prospects
Bitcoin fell from record highs over $58k to $45k early within this week during a typical market correction. The cryptocurrency has largely traded the range of $48k to $51.5k within the past 24 hours, consistent with CoinMarketCap.
Spikes in outflows from Coinbase Pro have consistently marked interim bottoms (the end of price pullbacks and therefore the start of reversals higher) throughout the cryptocurrency’s four-month Bull Run from $10k to $58k. If history may be a guide, bitcoin could soon begin subsequent leg higher.
Additionally, Federal Reserve Chairman Jerome Powell assured markets of the continued monetary stimulus earlier on Tuesday and Wednesday. So far, however, that has did not put brakes on the rally in United States bond yields. Notably, the 10-year Treasury yield has now jumped to a fresh 12-month high of 1.45%, consistent with data source TradingView.
A continued rise in yields could stabilize stock markets, inviting selling pressure for the leading cryptocurrency, Bitcoin, as noted by trader and analyst Alex Kruger.
At the reporting time, the Bitcoin is presently trading over a price $50k, representing a 1.12% gain within past 24 hours.