Bitcoin is down again today, but some analysts see bright spots on the horizon.
Today, Omkar Godbole at Coindesk argues that outflows from the Coinbase Pro exchange indicate that institutions are buying on the dip, and settling in for the long haul.
In what Godbole calls a “typical bull market correction,” where BTC has sank some 10-15% in a few market cycles, Coinbase outflows of 13,000 Bitcoin, he says, are a signal that can be carefully parsed to show some kinds of likely institutional response to current Bitcoin markets.
As Godbole explains in the forensic process of looking at these wallet moves, custody wallets are integrated with over-the-counter exchange action. Big institutions, he says, tend to use over-the-counter trajectories to avoid impacting spot market prices.
Thus, Godbole contends that it’s likely that these signals are showing companies and big investors hopping onto the Bitcoin bandwagon as this significant price correction occurs. After spiking above $50,000, Bitcoin is now down in the lower half of the $40,000’s.
Keep in mind that just last year it was as low as $10,000.
That means many more new Bitcoin millionaires and billionaires who have already bought in at historic low prices.
In other news, Godbole also tempers the above observations by mentioning a U.S. bond yield rally that could stabilize equities.
“The 10-year Treasury yield has now jumped to a fresh 12-month high of 1.45%, according to data source TradingView,” he writes. “A continue rise in yields could stabilize stock markets, inviting selling pressure for bitcoin.”
Meanwhile, over at Cointelegraph, looking long-term, William Suberg suggests that the FOMO around BTC is not over yet.
“Bitcoin bears thinking that $58,000 was this cycle’s top will be sorely disappointed, fresh investment data from past bull markets shows,” Suberg writes. “Compiled by on-chain analytics resource Whalemap, statistics covering BTC buys of between $5 million and $7 million conclude that even at recent all-time highs, Bitcoin was far from a ‘macro top.’”
Keep an eye out.