A leading cryptocurrency analytics firm has identified a frequently overlooked indicator that major buyers accumulate Bitcoin (BTC). It also sheds light on investor changes in Bitcoin compared to last year.
Changes in Bitcoin Last Year
CryptoQuant, an on-chain data analytics provider, is investigating what has changed in BTC over the past year, as mentioned in a headline on social media platform X. The renowned analytical company stated the following about the topic:
What has changed in Bitcoin in the past year? Reserves of centralized exchanges based in the US continue to decline. The outflow amount indicates the possibility of institutions accumulating. The recent price movement was driven by the futures market.
According to CryptoQuant, BTC reserves on non-US exchanges increased last year, while the same figure decreased on US-based exchanges. Additionally, CryptoQuant states that institutional buyers are likely consistently accumulating the leading cryptocurrency based on its market value. The company said the following about the topic:
Institutional accumulation is evident as institutions are continuously buying Bitcoin, considering the withdrawal amount, deposit and withdrawal records of wallets. For example, in just August alone, over 20,000 BTC, which is equivalent to about 25% of Gemini’s holdings, was withdrawn.
Institutional Adoption in Bitcoin
The analysis firm provides further evidence to support institutional findings. As evidence, the company presented the following data:
27.7 thousand BTC was withdrawn from Gemini’s wallet address: 3Fup These Bitcoins were transferred to wallets such as 1QB, 1Et, and 35g.
The firm also identified that investors are increasingly exposed to BTC derivative products and futures markets. On the other hand, institutional interest in Bitcoin can influence the price by increasing adoption, investment, and liquidity. The investment of major corporations and institutions in Bitcoin can instill trust in the cryptocurrency market and increase its overall popularity. The interest of institutional investors in Bitcoin can affect the supply and demand balance in the market and lead to price fluctuations. Additionally, institutional participation often attracts more media attention and public interest, which can further enhance the general adoption of Bitcoin.
