With 30,000 BTC leaving Coinbase, institutional buying of Bitcoin 'could be big narrative again'

The price of Bitcoin may be falling below $40,000, but the latest data shows that demand from major investors has not waned at all.

Ki Young Ju, CEO of on-chain analytics platform CryptoQuant, believes that institutional buying of Bitcoin could once again become the "big narrative" in the crypto space.

Large amount of BTC transferred from Coinbase Pro

Ki highlighted data from Coinbase Pro, the professional trading arm of U.S. exchange Coinbase, which confirmed that large amounts of bitcoin continue to leave its books.

It’s not the first time that transfers totaled 30,000 BTC in a single day this week, with similar behavior seen in March.

Coinbase Pro Bitcoin Reserve vs. BTC/USD Chart Source: CryptoQuant

"30,000 BTC out of Coinbase today," he noted.

"Institutional buying could be the big story again because the executive order didn't create any hurdles."

The U.S. executive order, aimed at investigating various aspects of the cryptocurrency ecosystem, does not appear to be deterring large-scale investors seeking exposure.

Annotated graph of BTC outflow from Bitcoin exchange Source: Ki Young Ju/Twitter

As Cointelegraph reported this week, the trend is evident across exchanges, with total outflows in April now trying to match March.

The reduction in supply contrasts with a troubling macro picture that continues to weigh on risk assets, including cryptocurrencies.

Bitcoin’s correlation with stocks, which is itself subject to central bank policy, needs to be broken for the situation to improve, but analysts say it’s far from a smooth process when it happens.

Commentator Dylan LeClair explained earlier this week: “Correlations eventually break down — for a number of reasons.”

My guess: the credit system will eventually collapse and volatility will explode. Bitcoin is not far behind, but more because of derivatives traders than spot sales. As spot supply continues to be constrained, BTC bears habitually exit every rally. "

Terra continues to exert buying pressure

Meanwhile, the story of Terra, the main buyer blockchain protocol this year, continues. The Terra-affiliated nonprofit Luna Foundation Guard (LFG) has amassed an estimated 2,633 bitcoins ($105.3 million) over the past 48 hours.

According to monitoring resource BitInfoCharts, Terra’s wallet is now the 18th-largest wallet by bitcoin holdings, holding more bitcoin than Tesla’s allocation.

LFG Bitcoin wallet (screenshot) Source: BitInfoCharts

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