According to top on-chain analyst Willy Woo it’s likely institutional investors that are creating new demand for Bitcoin (BTC).
The on-chain analyst shared with his 980.6K followers on Twitter that he is closely following at the exchange net flows – a metric that tracks the amount of Bitcoin moving in and out of crypto exchanges.
Exchange net flows are currently pointing to the dominance of exchange outflows, which could mean a rise in demand and that the investors are holding on to their BTC while waiting for its price to appreciate. Woo tweeted:
“I guess BTC is in demand lately.”
The analyst also looked into the amount of BTC moving into the hands of whales, or entities with 1,000 to 10,000 BTC. Woo believes that majority of whales are likely institutions.
Woo uses data from blockchain tracker Glassnode to adjust the data for known entities such as exchanges, public companies, WBTC, ETFs etc.
Glassnode analysis shows that the balance of Bitcoin on exchanges is currently at the lowest point in the last three years, suggesting that sell-side pressure for BTC is starting wear off.
“BTC balance on exchanges just reached a three-year low of 2,505,972.824 BTC
Previous three-year low of 2,508,534.211 BTC was observed on 27 January 2022.”
? #Bitcoin$BTC Balance on Exchanges just reached a 3-year low of 2,505,972.824 BTC
Previous 3-year low of 2,508,534.211 BTC was observed on 27 January 2022
Glassnode also points out that the large majority of all transfer volume on the Bitcoin network is dominated by institutional-sized flows, which could mean that that the big players are starting to take control of the largest crypto asset.
“Bitcoin transfer volumes continue to be dominated by institutional size flows, with more than 65% of all transactions being larger than $1 million in value.
The uptrend in institutional dominance in on-chain volumes started around Oct. 2020 when prices were around $10,000 to $11,000.”
#Bitcoin transfer volumes continue to be dominated by institutional size flows, with more than 65% of all transactions being larger than $1M in value.
The uptrend in institutional dominance in onchain volumes started around Oct 2020 when prices were around $10k to $11k. pic.twitter.com/tTbMEuIriB
