Data shows that institutions on Coinbase Global Inc COIN increased their Bitcoin BTC/USD holdings significantly since the last quarter of 2020.
What Happened: According to an analysis by crypto data firm CryptoQuant, institutions currently hold 1.4 million BTC on Coinbase — a 296% increase in 15 months.
See Also: HOW DOES COINBASE MAKE MONEY?
Although this figure has dramatically increased since the fourth quarter of 2020, when Coinbase had custody of just 580,739 BTC on behalf of institutions, it has also decreased over the last quarter when Coinbase held over 2.2 million BTC for such clients.
Still, according to CryptoQuant CEO Ki Young Ju, the BTC balance of institutions is large enough to rule out fears of the digital asset dropping below the $20,000 mark.
“Unlikely to go below the $20k unless these institutions, class of 20' and 21', sell Bitcoin,” he wrote on Twitter.
Back to the charts.#Bitcoin has entered the heavy accumulation zone (white), which shows us that larger entities (or a large % of the network) are accumulating.— On-Chain College (@OnChainCollege) May 30, 2022
Looking over the last cycle, we saw this heavy accumulation zone on price run-ups and macro bottoms. pic.twitter.com/QBt4lzlGvw
Data from crypto analytics firm Glassnode also shows that Bitcoin’s larger holders have begun accumulating more, potentially indicating a macro bottom.
See Also: HOW TO BUY BITCOIN (BTC)
Price Action: According to data from Benzinga Pro, BTC was trading at $31,681, up 4.87% in the last 24 hours.
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