Institutions are accumulating Bitcoin like in Q4 2020

    16 Aug 2021

    Bitcoin reserves available on derivatives exchanges dropped to their lowest since May 11, before the start of miners’ crackdown in China and the following crypto price crash. That reflects institutions still accumulating crypto funds like in late 2020.

    According to data from CryptoQuant analytics service, confirmed that as of Tuesday, derivatives reserves reached 1.256 million BTC in total, which is the least since May 11.

    Amid institutional interest returning to cryptocurrency instruments like the Grayscale Bitcoin Trust (GBTC), the data shows that major players have been raising their BTC holdings throughout the market downturn.

    As commented analyst William Clemente III, “big money has been buying.”

    Exchange balances reflect that derivatives platforms are repeating the trend last seen in Q4 2020. Even during the most intense phase of the bullish crypto market this year, derivatives balances conversely grew, while decreasing balances appeared only at the very beginning of the uprun to $64,500.

    (Bitcoin derivatives exchange reserves chart. Source: CryptoQuant)

    Highlighting further data, Clemente III added:

    “Since May 19, entities with 10K-100K BTC have added +269,450 to their holdings ($12.1 billion). These entities have between $450 million to $4.5 billion of their capital allocated to Bitcoin.”

    (10,000–100,000 BTC entity growth chart. Source: William Clemente III/Twitter)

    Ongoing accumulation of funds seemingly shows institutions have not been scared away by any overriding blusters against cryptocurrencies, such as China’s miner exodus since May or regulatory discussions over the US infrastructure bill.

    (Bitcoin all exchanges reserves chart. Source: CryptoQuant)

    By the recent Cointelegraph report, retail exchange balances have already been heading lower for some time. The total exchange balance figure a three-month low, standing at 2.44 million BTC.

    As earlier reported, according to data of CoinGecko, the cryptocurrency market has continued a notable rise, surging $700 billion over the past 21 days, with the total market capitalization breaking $1.9 trillion.


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