As 30,000 BTC Leave Coinbase, Institutional Bitcoin Buying “May Become a Big Story Again”

Regardless of where Bitcoin’s price moves, institutional investors are taking action to buy this month.

The price of Bitcoin may be falling below $40,000, but the latest data shows that demand from major investors has not slowed down at all.

Ki Young Ju, CEO of on-chain analytics platform CryptoQuant, believes that institutional buying of Bitcoin could once again become the “big narrative” in the crypto space.

Large amounts of BTC transferred from Coinbase Pro

Ki highlighted data from Coinbase Pro, the professional trading arm of U.S. exchange Coinbase, which confirmed that large amounts of Bitcoin continue to leave its books.

The transfer volume totaling 30,000 Bitcoins in one day this week is not the first time this has happened, with similar behavior occurring in March.

Coinbase Pro Bitcoin reserves vs. BTC/USD Chart source: CryptoQuant

“30,000 bitcoins went out of Coinbase today,” he noted.

“Institutional buying could become the big narrative again, as the executive order creates no impediments.”

The U.S. executive order, which aims to investigate various aspects of the cryptocurrency ecosystem, does not appear to have had a deterrent effect on large investors seeking exposure.

Bitcoin exchange BTC outflow annotation image source: Ki Young Ju/Twitter

As Cointelegraph reported this week, the trend is evident across exchanges, with total outflows in April now attempting to catch up to March’s.

The reduction in supply contrasts with troubling macro conditions that continue to weigh on risk assets, including cryptocurrencies.

Bitcoin’s correlation with stocks, itself constrained by central bank policy, needs to break for things to improve, but analysts say that process will not be smooth sailing when it happens.

“Correlations eventually break down — for a variety of reasons,” commentator Dylan LeClair explained earlier this week.

My guess is: the credit system will eventually collapse and volatility will explode. Bitcoin will follow, but more because of derivatives traders than spot selling. BTC shorts will habitually exit on every rally as spot supply continues to be constrained.”

Terra continues to exert buying pressure

Meanwhile, the story of blockchain protocol Terra, a major buyer this year, continues. The nonprofit Luna Foundation Guard (LFG), affiliated with Terra, has accumulated about 2,633 BTC ($105.3 million) in the past 48 hours.

According to data from monitoring resource BitInfoCharts, Terra’s wallet is now the 18th largest wallet by Bitcoin holdings, holding more BTC than Tesla’s allocation.

LFG Bitcoin Wallet (screenshot) Source: BitInfoCharts