Institutional investors are continuing to buy Bitcoin, although negative news has recently been spoiling investor sentiment.
On the night of Christmas Eve, Bitcoin ( BTC ) was rejected at the US $ 24,000 mark, but the hunger of institutional investors is not lessening.
According to data from the analysis platform CryptoQuant, the crypto exchange Coinbase Pro, which specializes in professional investors, recorded two payouts this week, each of over 12,000 BTC (278 million US dollars).
Coinbase is paying out $ 500 million to BTC
As Cointelegraph reports , withdrawals of this magnitude often indicate that a major investor has purchased a significant amount of Bitcoin that is being moved into a single wallet.
“Another great Coinbase payout within a few hours” as Ki Young Ju, CEO of Crypto Quant, accordingly on Twitter finds . From this he concludes:
“The institutional investors are buying Bitcoin.”
In November, all Bitcoin miners together “mined” around 28,000 BTC in block rewards, which is only slightly more than the sum of the two most recent Coinbase withdrawals. This makes it clear that there is currently a shortage of the market-leading crypto currency, which in turn drives its price upwards.
Negative reports ruin the festival
The continuing interest of institutional investors is in stark contrast to the latest developments in the market, which are dampening investors’ Christmas mood somewhat. Above all, the SEC lawsuit against crypto payment service provider and XRP publisher Ripple is causing tremendous turbulence, but the threat of massive Bitcoin sales in the case of the Mt. Gox crypto exchange are also causing concern.
The fear that trading in the Ripple crypto currency XRP could be banned entirely in the future was probably the breeding ground for the volatility of Bitcoin in the past 24 hours.
At the same time, the market is keeping an eye on the sponsors of Mt. Gox, who own large amounts of BTC through repayments, which they may now want to sell at the current record rate . That alone could add $ 3.2 billion to selling pressure.
Despite this negative news, institutional investors still seem confident about the future of Bitcoin, which can be seen not least from the two large Coinbase payouts.