According to CryptoQuant, 15,200 BTC were withdrawn from Coinbase Pro on January 31. This can be the result of large OTC trades.
Analysts said that in just one day, more than $ 500 million worth of bitcoins were withdrawn from Coinbase Pro. CryptoQuant CEO Ki Young Ju wrote that bitcoins have moved to wallets that are characterized by incoming transactions. Transactions were made in the range from 1,100 BTC ($ 35 million) to 4,400 BTC ($ 150 million). Ju suggested that this is due to large trades being made by institutional investors on over-the-counter (OTC) platforms. Given that Coinbase’s custodian service is integrated with OTC platforms, this confirms Ju’s speculation about OTC activity.
The CryptoQuant CEO called this situation the “most bullish signal” for Bitcoin. Institutional traders use OTC markets to buy or sell large amounts of digital assets so as not to create unnecessary fluctuations in the market. However, these transactions can still affect the bitcoin rate. Markets tend to find balance. When the supply of an asset shrinks and demand from retail investors remains unchanged, over-the-counter transactions can lead to a rise in Bitcoin, albeit with a delay.
Recently, large companies are increasingly investing in bitcoin. For example, in November, Guggenheim Partners announced its intention to allocate more than $ 500 million to invest in the Grayscale Bitcoin Trust. Meanwhile, BlockFi has filed an application with the US Securities and Exchange Commission (SEC) to register a similar bitcoin trust. Therefore, the demand for this crypto asset is stimulated not only by the statements of Tesla CEO Elon Musk that he became a supporter of the first cryptocurrency, but also by the actions of large companies.
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