Bitcoin Irresistible To Institutional Buyers Even At $54,000: What You Need To Know

Outflows from Coinbase’s institution-focused platform indicate that large or multiple large investors may be moving Bitcoin (BTC) for likely long-term storage or other purposes.

What Happened: Data from CryptoQuant, a provider of on-chain data, charts, and alerts, indicates that approximately 14,666 BTC flowed out of Coinbase Pro on Tuesday morning. 

At press time, BTC traded 0.53% lower at $54,556.78. This values the outflow at an estimated $800.13 million.

“The outflow was split into multiple wallets, which could be their hot wallets, representing an internal transfer or custodian wallets for institutions,” Ki Young Ju, CEO of CryptoQuant, told CoinDesk. 

Why It Matters: Bitcoin on Monday dropped to the $54,000 mark, a level not seen in almost two weeks. 

Outflows from Coinbase are often used as a metric to measure the institutional demand for BTC as the exchange’s cold wallets for custody are integrated with its over-the-counter desk, noted CoinDesk. 

Institutional investors and large traders reportedly trade through the OTC desks to avoid having too much of an influence on prices.

See also: How to Buy Bitcoin (BTC)

“I think it’s likely to be a custodian wallet, which might indicate institutions are still buying the dip,” Ju told CoinDesk. 

In February, Elon Musk-led Tesla Inc TSLA purchased $1.5 billion worth of BTC. Other large investors who have exposure to BTC include MicroStrategy Incorporated MSTR which owned 90,531 BTC, as of late February today worth about $4.93 billion.
See Also: Beyond Bitcoin: China's Publicly-Listed Beauty App Meitu Buys $22M Ethereum

Jack Dorsey's Square Inc SQ also purchased $170 million worth of BTC in February after making a $50 million BTC purchase in October last year.

Posted In: BitcoinBlockchainCryptoQuantDigital AssetsCryptocurrencyMarkets

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.