Late Thursday, February 26, the Bitcoin (BTC) price crashed for the second time in a week tanking below $46K levels in a market-wide sell-off. As CoinGape reported, the BTC price crash came as investors resolved to profit-booking in risky-assets after the surge in the U.S. bond yields.
However, it seems that the institutional demand for Bitcoin (BTC) continues as the BTC price remains under pressure. The Bitcoin liquid supply on exchanges continues to sink lower while demand continues to increase on the other hand. During Thursday’s correction, nearly 13K Bitcoins were moved out of Coinbase with most of the supply reportedly going to cold storage.
CryptoQuant CEO Ki-Young Ju has pointed that the Coinbase Premium has turned positive indicating that institutions are buying over the Coinbase Pro platform. Coinbase Premium is “the gap between Coinbase Pro price(USD pair) and Binance price(USDT pair) which indicates a strong spot buying pressure from Coinbase when the premium is high”.
Coinbase premium turned to positive.
— Ki Young Ju 주기영 (@ki_young_ju) February 26, 2021
Based on this scenario, Young adds:
“I think it will eventually go above 48k which is the institutional buying level, so I bought more $BTC here at 46k. Not sure about short-term price moving tho”.
Bitcoin Price Recovery Likely Ahead
I’m expecting a gradual Bitcoin recovery.
Some more stablecoin inflows and it would be more optimistic.
— Joseph Young (@iamjosephyoung) February 26, 2021
Over the last week, some big players made the most of the Bitcoin price dip. Canada’s Purpose Bitcoin ETF, Squaare Inc and Microstrategy scooped up some major supplies at the lower price. The Canadian Bitcoin ETF has over 10,000 Bitcoins in assets under management (AUM) worth nearly half-a-billion dollars.
Another interesting report shows that as the institutional activity kicked in during the last quarter of 2020, Coibase accounted for most of its trade.
Coinbase says it’s executed “nine and ten figure trades for some of the largest institutions in the world.”
— Bloqport (@Bloqport) February 26, 2021