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The head of the CryptoQuant platform, specializing in the assessment of market activity data, Ki Yeung Joo said that the value of Bitcoin (BTC) will not fall below $ 20,000. The expert supported this statement with the remark that “support in the face of institutional investors is at an unprecedentedly high level.”
Ju cited data on the work of the custodial service for storing digital assets of the Coinbase Custody exchange. According to the graphs, the volume of bitcoins in management continuously increased for 5 quarters, from October 2020 to December 2021. The increase at the end of the period was 296%. Thus, the volume of deposits of institutional investors amounted to 2.2 million BTC.
The analyst also demonstrated a decrease in digital stocks in storage facilities in the first quarter of this year, for the first time since the end of 2020. Which, according to the head of CryptoQuant, was a reaction to the weakening of the market ability to maintain the price of the leading asset. However, at the moment, 1.4 million BTC continues to be in common storage.
Based on the data obtained, Ju concluded that in order to reduce the value of BTC to the level of $ 20,000, it is necessary to sell all the capital accumulated during the period of consolidation to the level of content of 500 thousand bitcoins. At this step, institutionals, according to the cryptanalyst, are not yet ready. The expert added that the value of Bitcoin is likely to have reached the bottom of this cycle of decline.
Earlier, in January 2022, the head of one of the largest investment companies Galaxy Digital, Mike Novogratz, shared that influential market players are just beginning to enter the field of Web3 space.
Such significant holders of capital, such as insurance companies and management funds, show increased interest in the digital industry, but have not yet joined the participation.
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