Bitcoin shortage: Wall Street FOMO dwarfs BTC whales
Institutions are making the whales look small with their purchases since Bitcoin soared above US$20,000.
Bitcoin (BTC) is experiencing a new kind of reversal now that it has climbed above US$20,000. The original whales of BitQT are gradually selling their coins to larger institutional buyers.
Data from on-chain analytics service CryptoQuant shows that while long-term investors are now selling, buyer demand is still greater than the number of sellers.
Analyst: Bitcoin whales ’small‘ compared to new buyers
The BTC/USD pair continues to reach new highs. The „original“ whales are starting to look like mere plankton compared to the institutions that are now looking to buy in a big way.
According to data from CryptoQuant on exchanges, outflows hit a one-year high in the hours before the $20,000-plus outburst. The combination of BTC shortages on exchanges and institutional buying in over-the-counter trading is laying the groundwork for a battle for the remaining supply. Higher prices are the only logical solution here.
„I repeat: liquidity crisis coming,“ Danny Scott, CEO of UK exchange Coin Corner, summed up the situation.
CryptoQuant CEO Ki Young Ju said some time ago that he had opened short positions on bitcoin at US$20,800. Even he now admitted that he had been surprised by the whale activity.
„Will focus on the bigger whales next time,“ he tweeted as the market continued to see big selling.
„The old whales were small whales.“
Bitcoin stock market flow annual chart
Ki then pointed to the „massive“ outflow from the Coinbase exchange as evidence of institutional, off-exchange activity. Current BTC reserves on exchanges are at their lowest level since November 2018.
„It looks like the massive Coinbase outflow is generally going to the new cold wallets for custody/OTC holding 6000-8000 $BTC. #Greyscale uses #GenesisTrading to buy bitcoins, and #GenesisTrading uses Coinbase custody,“ as he commented on an attached chart.