Institutional Investors Buy 100,000 Bitcoin in a Week
12 Jul, 2024 ● أخبار العملات المشفرة
Bitcoin institutional investors are "buying the dip" while BTC price action hovers around multimonth lows, according to recent analysis.
In a Quicktake blog post on July 11, onchain analytics platform CryptoQuant disclosed that 100,000 Bitcoin had been purchased within one week.
These institutional investors are buying with more conviction now than when BTC/USD was near all-time highs.
CryptoQuant contributor Cauê Oliveira analyzed the wallet balances of entities holding between 1,000 and 10,000 BTC.
Since the beginning of June, these entities have significantly increased their exposure as BTC/USD has dropped by up to 23%.
Even last week, when Bitcoin reached its lowest levels since late February, the buying continued, with the total increase surpassing 100,000 BTC ($5.7 billion).
“While many novice investors capitulated last week, with special emphasis on coins purchased between 1 and 3 months ago, institutional players made the largest accumulation process since March,” Oliveira summarized.
The 30-day rolling balance change matches the significant inflows seen during the peak of investments in U.S.-based spot Bitcoin exchange-traded funds (ETFs) in March.
This time, however, with ETF inflows being relatively cool, the Bitcoin appears to be going elsewhere.
“This means that, unlike what was seen in March, which was a demand more linked to fundraising, the current institutional accumulation may indicate a true process of ‘buying the dip’ in large players,” Oliveira concluded.
While March’s daily inflows exceeded $1 billion, current day-to-day figures are much smaller.
Data from various sources, including UK-based investment firm Farside Investors, reported around $79 million for July 11, while July 8 saw $294 million, the highest in a month.
Sources:
https://cointelegraph.com/news/buying-the-dip-bitcoin-institutional-investors-add-100k-btc-week
