Bitcoin (BTC) flow from cryptocurrency exchanges to cold wallets is increasing. There are more whales with 1,000 bitcoins or more and are still thirsty.
According to analyst Willy Woo, institutional investment in bitcoin (BTC) is back in his latest report on the market for the first of the digital assets. In the last three days of last week, there was a necessary amount of spot purchases of bitcoin.
Woo expressed in the report that many coins migrated from exchanges into cold storage. This volume of BTC coming out of sales is now at record levels again.
From Woo’s point of view, the demand from significant investors for BTC is anything but declining. This situation is contrary to what was happening in previous weeks when public and private institutions seemed to be distancing themselves from bitcoin as the crypto environment suffered due to geopolitical causes.
Institutional Whales in Hoarding Mode
Woo highlighted in the report, a chart showing increasing demand from big bitcoin holders taking over all the coins coming off exchanges.
Woo also expressed that while spot bitcoin buying has returned to the market by large institutions, this is not an event linked to the demand from futures markets.
According to Woo, the market is in an extended accumulation band, noting that the uptick in spot buying combined with further accumulation should push the bitcoin price.
The Price of Bitcoin
The exit of bitcoin from the exchanges is a bullish sign, considering that the price of the pioneer of the digital assets is the result of supply and demand. As soon as a large amount of collection continuously flows into cold wallets, the price of BTC can start to rise.
Large institutions have been purchasing bitcoin, such as the case of professional investment funds and hedge funds, but also insurers and pension funds.
In parallel with Willy Woo, CryptoQuant CEO Ki-Young Ju showed off a chart on Twitter a couple of days ago. He reveals that 30,000 BTC was leaving Coinbase Pro, indicating that large companies, such as Tesla or MicroStrategy, might be buying BTC.
Institutions willing to buy bitcoin coincide with signals from the Joe Biden administration that regulation will remain crypto-friendly. It got suggested in the acclaimed executive order, but because of how the Secretary highlighted Satoshi Nakamoto’s creation.
To verify whether these large movements of bitcoin leaving the exchanges correspond to institutional purchases, we will have to wait for the end of the second quarter of the year, when public companies disclose their balances.
By: Jenson Nuñez
