Data Shows Institutions are Buying Bitcoin Above $30,000 Despite TurbulenceJanuary 5, 2021
- Bitcoin’s price action has been quite mixed as of late, with buyers and sellers both vying for control over the cryptocurrency’s trend
- Over a mid-term time frame, bulls are clearly in control and are showing no signs of letting up to bears anytime soon
- Where the market trends in the mid-term will likely depend on whether Bitcoin once again starts rallying independent of the rest of the market
- If altcoins cede some of their strength in the short-term, it could fuel a rise past all-time highs
- Although BTC’s price is relatively high compared to where it was just a few months ago, on-chain data seems to indicate that large whales are still flooding into BTC at a rapid pace
Bitcoin has seen some wild price swings over the past few days, plunging to lows of $30,000 just a few days ago before rocketing up to highs of $33,500 this morning.
The cryptocurrency is showing few signs of weakness at the moment, with bulls slowly but surely pushing the cryptocurrency higher as they target further near-term upside.
Where the entire market trends in the mid-term will undoubtedly depend on Bitcoin and whether or not it can create tailwinds for Ethereum and other altcoins.
One on-chain analyst is now noting that data indicates that whales and institutions are still flooding into Bitcoin despite its relatively high prices. This indicates that upside could be imminent.
Bitcoin Gains Steam as Market-Wide Rally Continues
At the time of writing, Bitcoin is trading up just under 6% at its current price of $33,770. This marks a massive rise from its recent lows of $30,000 set just a couple of days ago.
The entire market is moving higher in tandem with BTC, with Ethereum and most major DeFi altcoins gaining some serious momentum.
Bitcoin does appear to be vying for a move to its previous all-time highs, but it remains unclear as to whether or not it will gain enough momentum to shatter this level in the short-term.
Institutions are Still Buying BTC Despite Rally
Institutions are continuing to fuel the cryptocurrency’s growth, showing no signs of slowing down their newfound Bitcoin accumulation habits.
One analyst explained in a recent tweet that data indicates institutions are still bidding up Bitcoin’s price.
“FYI, Coinbase outflow on Jan 2 was an all-time high. It seems institutions bought BTC when the price above 30k. BTC bull market isn’t over.”
Image Courtesy of Ki Young Ju. Source: CryptoQuant.
This means that Bitcoin is unlikely to see any immediate trend change, although its uptrend may wane once this class of buyers grows content with their positions.
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