Bitcoin: The Shifting Landscape of Institutional Investments

In recent months, Bitcoin (BTC) has risen to unprecedented popularity. With a number of Wall Street companies teaming up to establish a new exchange, Bitcoin has emerged as one of the coins benefitting greatly from this development. However, data from Glassnode suggests that the number of bitcoins held on institutional trading platforms has decreased by 33%.

Growing Trend of Institutional Investors Taking Bitcoin Offline

Data from Glassnode, an on-chain analysis firm, reveals interesting insights into the state of not just the well-known crypto exchanges but also the “Over-The-Counter” (OTC) desks. OTC refers to a type of trading where customers make direct purchases, creating a more personalized experience but limiting access to only institutional investors. This provides valuable insights into how deep-pocketed traders participate in the crypto market.

Currently, Bitcoin supply on OTC platforms has fallen by 33%, indicating that large investors have acquired substantial amounts of coins and withdrawn them from these platforms.

As of now, the participating companies still hold approximately 5,140 BTC, valued at around €136.2 million, given the current Bitcoin price. This figure stood at around 7,700 BTC at the end of June.

Are Whales Looking to Buy or Sell?

In the first half of this year, the number of coins in these wallets increased by 156% as Bitcoin’s value rose by approximately 86% against the euro. This could be seen as a bearish signal, implying that institutions are ready to sell their coins. However, the current 33% decrease suggests that large investors are actually looking to “HODL” (Hold On for Dear Life) their Bitcoin.

Meanwhile, the presence of stablecoins on regular exchanges also indicates that the market is primed for further upward movement. However, there are conflicting signals as some investors are actively selling. If enough large traders, also known as “whales,” join the selling trend, it could negatively impact the price.