An unidentified investor bought USD 1.6 billion worth of Bitcoin, driving the price to rise in a matter of minutes. As the attention of the market is on the upward trend of Bitcoin, institutional interest increases significantly.
CryptoQuant CEO Ki-Young Ju believes that an anonymous buyer was the one who sparked the bullish rally of Bitcoin. He acquired an enormous amount of the pioneering cryptocurrency through market orders in just 5 minutes.
The executive explained that the short sales looked relatively lower, for which they were like a purchase by whales. However, he clarified that the investor that made that acquisition was not from the United States.
Curiously, the last time such a large purchase occurred was when Elon Musk announced that Tesla had acquired USD 1.5 billion worth of Bitcoin. That caused the price of the pioneering cryptocurrency to skyrocket immediately.
The Vice President of Market Intelligence at Messari, Eric Turner, believes that more companies will be investing in Bitcoin. He stressed that this would occur as a consequence of the step that Tesla took.
A Huge Purchase of BTC Leads to a Price Rally
A person or group of people recently bought a large amount of Bitcoin on centralized exchanges. South Korea-based blockchain data firm CryptoQuant reported that that transaction occurred in around 5 minutes.
As the price of Bitcoin rose sharply on American exchange Coinbase, some people speculated that the operation may have started there. Ki-Young Ju pointed out that the Coinbase Premium indicator rose sharply at the same time before falling again.
That indicator shows the gap between Coinbase’s BTC / USD pair and Binance’s BTC / USDT pair involving stablecoin Tether. When the number rises, that usually reflects that there is higher purchasing power on the exchange.
Other People Give their Opinion about that Purchase
Renowned analyst Willy Woo believes that this big Bitcoin purchase happened on Binance rather than Coinbase. In that regard, he primarily cited blockchain data firm Glassnode.
The expert said that no net flow left Coinbase and commented that the purchase is not out of the ordinary compared to other exchanges. He pointed out that buying seemed stronger on Binance while Coinbase was selling rather than buying.
The head of research at IntoTheBlock, Lucas Outumuro, agreed that the purchase occurred primarily on Binance.
CoinMarketCap said that people should prepare for the crazy crypto week that is approaching. While some users have been waiting for it, others wonder whether it would be the potential approval of Bitcoin ETF futures.
The pioneering cryptocurrency is trading at around USD 56,400 and has accumulated a 9.1% profit in the past week. While its trading volume is above USD 34.4 billion, its market capitalization is approximately USD 1.062 billion, according to CoinGecko.
Bitcoin has always proved to be able to recover from its worst lows, resuming its all-time highs. Comments from well-known personalities like Elon Musk and Michael Saylor and institutional investments have boosted its price.
By Alexander Salazar
