Bitcoin (BTC) is at a critical juncture in its bid to maintain its $2 trillion market cap and $100,000 level, while institutional investors continue to pick up coins from the market.
Bitcoin has surged above $30,000 since Donald Trump won the US election in November. This surge coincided with a large amount of BTC being withdrawn from exchanges.
According to Glassnode data, large-scale withdrawal transactions worth over $10 million are being made with Bitcoin from exchanges. This situation is considered an indicator of aggressive purchases at the institutional level. Since most transactions originate from Coinbase, a premium has been observed on Coinbase in recent weeks.
Lowest level of the year
As of yesterday, it was reported that approximately 12,500 BTC ($1.3 billion) had been withdrawn from exchanges, half of which came from Coinbase. A total of approximately 200,000 BTC have been withdrawn from exchanges since the US elections. This reduced the amount of Bitcoin on exchanges to approximately 2.8 million BTC. This level was recorded as the lowest amount in the last seven years.
This data may indicate that institutional demand for Bitcoin continues to increase and investors are preparing for a long-term bull market. Once the $100,000 level is broken, it is thought that the obstacles to higher price levels for Bitcoin may decrease.
Stay tuned.