16 May 2022 20:55, UTC.
Reading time: ~2 m
Analysts at Korea-based CryptoQuant believe market volatility hasn’t stopped big investors from hoarding bitcoins.
CryptoQuant CEO Ki Young Ju posted a series of posts on Twitter claiming that big investors have found ways to continue saving bitcoins despite exchange rate volatility. According to the CryptoQuant chief executive, “institutional investors are buying bitcoins right now through market makers.”
Yang Ju states that large cryptocurrency exchanges are very popular with corporate investors. For example, on May 7-10, investors sent about 84,000 bitcoins from the Gemini crypto exchange to the Binance trading platform, thus reaching an all-time high:
The head of CryptoQuant believes most of the pressure from sellers came from Coinbase, as they had the largest bitcoin inflows from Binance. BTC/USD spot trading volume on Coinbase hit a one-year high and Coinbase Premium hit a three-year low of -3%. Yang Ju added that market makers sent a total of $2.5 billion worth of BTC to exchanges last week.
Key Yang Ju summarizes that “large organizations tried to set the price of bitcoins at $30,000, but they had to stop at $25,000 because of the unexpected sale of the Luna Foundation Guard (LFG).”
Last week, experts at management company CoinShares noted that the global decline in the cryptocurrency market has helped boost bitcoin investments among institutional investors.
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