Bitcoins price has been rather volatile over the last few weeks. The cryptocurrencys recent plunge that wiped around $200 billion from the crypto space scared investors, but a key support level may be being held by institutional investors.
The price of bitocin how a new all-time high near $42,000 this month, after surpassing its previous all-time high in mid-December in a bull run that some believed was bolstered by institutional investors adding exposure to the cryptocurrency.
Over the weekend, however, BTCs price plunged from its new high to around $30,500, and has since recovered to $38,700 at press time. While the price has recovered, investors still believe it may soon fall.
Ki Young Ju, CEO of on-chain analytics firm CryptoQuant, asserted that many institutional investors bought the flagship cryptocurrency above $30,000 , and speculated that if they were indeed behind the bull run, they will be protecting BTC at $30,000.
There are many institutional investors who bought $BTC at the 30-32k level. The Coinbase outflow on Jan 2nd was a three-year high.Speculative guess, but if these guys are behind this bull-run, they'll protect the 30k level. Even if we have a dip, it wouldn't go down below 28k. pic.twitter.com/3GXLpjyWbp
— Ki Young Ju 주기영 (@ki_young_ju) January 13, 2021
Even if bitcoin fails to hold the $30,000 level, he speculated it wont drop below $28,000 which could be a fresh start for institutional investors. CryptoQuants data analyses institutional investment partly based on Coinbase outflows.
As reported, earlier this year $1.7 billion outflows from Coinbase suggested institutions bought large amounts of BTC even above the $30,000 mark. The outflows could represent institutional investment, according to the CEO, as the funds are moved to custody-looked-like wallets, potentially after Coinbase sets up a cold wallet for its customers from ove ...
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