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Last Bitcoin (BTC) Buying Opportunity? – Institutions reduce the supply



Although the Bitcoin price is currently fighting hard to maintain the psychologically important 40,000 US dollar mark, demand from institutional investors remains high. Is this constellation possibly the last opportunity to buy cheap Bitcoin ( BTC )?


In any case, Ki Young Ju, the managing director of the analysis service CryptoQuant, is convinced that the continuing Bitcoin investments by the institutions will continue to be the defining narrative in the coming weeks, as this will only make the available supply volume even scarcer. Rising prices are likely to result despite poor macroeconomic conditions.


30,000 BTC were bought in one day this week alone, an occurrence that has become more and more the norm since March.



Development of the existing BTC on Coinbase Pro compared to the Bitcoin course. Source: CryptoQuant

"Today alone, 30,000 BTC have flown from Coinbase," as Ki accordingly states. To that end he states:


"The purchases of institutional investors will probably again be the big topic in the next few weeks, because the executive order had no real impact."

The expert is thus referring to a current executive order from US President Joe Biden, which is explicitly aimed at the crypto industry, but does not seem to prevent large investors from continuing to invest heavily in the market.


Due to the large outflow of capital from the trading platforms, the existing supply is getting smaller, which should boost the Bitcoin price again in the medium term. Such a boost would be sorely needed, because the macroeconomic situation is currently causing noticeable downward pressure.


Ideally, the high demand from institutional investors could ensure that the correlation between BTC and the stock market is weakened or even dissolved, as the latter is under heavy pressure, not least from central bank monetary policy.


"The correlation will eventually unravel, for a number of reasons," according to crypto expert Dylan LeClair. To which he adds:


“My assumption: the financial system collapses and volatility explodes. BTC is catching up, but only through derivatives trading, not through the spot market. The bears, conditioned to sell off any downturn, will look down the drain in the medium term as the spot market becomes increasingly tight.”

Terra continues to generate demand

The crypto project Terra (LUNA) is currently actively contributing to this shortage, because in the last 48 hours alone the Luna Foundation Guard (LFG), which is responsible for securing the company's own stablecoin, has received an additional 2,633 BTC worth 105, Purchased for $3 million.


According to data from BitInfoCharts, the crypto project's wallet now ranks 18th among all Bitcoin wallets, already holding more BTC than influential electric car maker Tesla.


Opportunities to buy Bitcoin are therefore rapidly diminishing, which is good news for all existing investors, as the increasing scarcity will continue to drive the price higher in the long term.

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