Bitcoin (BTC), the largest cryptocurrency by market capitalization, continues to see an increase in institutional demand.
The lingering unfavorable market trend seems to have scared off retail investors, but institutional investors are seizing the opportunity to buy more. They appear to focus on long-term gains, unlike retail investors who are only in for the short-term gains.
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The recent data from on-chain analytics platform Glassnode prove the above assertion. The data says a whopping sum of 31,130 BTC worth relatively $1.2 billion was moved away from the US-based crypto exchange Coinbase in the past week.
The transactions represent the largest net outflow recorded since 2017. It’s becoming clear that investors now see Bitcoin (BTC) as a new veritable investment asset.
The large rush has led to a considerable decrease in the total balance held on the San Francisco-based exchange to about 650,000 BTC. This is the same level seen during the peak of the 2017 bull run.
Moreover, Coinbase’s total bitcoin holdings have slumped by 36.6% from the record high set in April 2020.
Glassnode also revealed that long-term holders who are less likely to sell their Bitcoin after holding their stacks for more than 155 days, are accumulating BTC at a rapid rate.
The market intelligence firm highlights that the accumulation rate of long-term holders is exponentially higher than the amount of BTC mined per day.
“At present, the LTH market inflation rate is at -10.9%, which means LTHs are currently adding to their balance at 7.6x the rate of issuance.”
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Glassnode’s lead on-chain analyst shows the numbers to illustrate the depth of accumulation by long-term holders.
“With ~900 BTC in mined issuance per day, this means around 6,840 BTC moving into LTH storage daily.”
#Bitcoin Long-Term Holders are adding to their balance at an annualised rate of 7.6x issuance.
With ~900 $BTC in mined issuance per day, this means around 6,840 $BTC moving into LTH storage daily.
Check out this metric in the Week Onchain newsletter.https://t.co/vWm8DS5P9u pic.twitter.com/Dh6XuJkFSP
— _Checkmate 🔑⚡🦬🌋 (@_Checkmatey_) March 14, 2022
At the time of filing this report, Bitcoin is trading at $41,045, with a relatively 4% price uptrend in the last 24 hours.
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