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Institutions are buying Bitcoin like it’s late 2020


11 Aug 2021   #Bitcoin

The amount of Bitcoin available on derivatives exchanges hits its lowest since May 11 - before the China miner rout took hold. Bitcoin (BTC) reserves on derivatives exchanges have dropped to levels last seen before the May price crash.

Data from on-chain analytics service CryptoQuant confirmed that as of Tuesday, derivatives reserves totaled 1.256 million BTC — the least since May 11.

Institutions repeat Q4 2020

Against a backdrop of institutional interest returning to cryptocurrency instruments such as the Grayscale Bitcoin Trust (GBTC), figures show that major players have in fact been adding to their BTC holdings throughout the downturn. “Big money has been buying,” analyst William Clemente III commented this week.

Exchange balances prove the point, with derivatives platforms seeing a repeat of the trend last witnessed at the end of 2020. Even during the most intense phase of the BTC bull run this year, derivatives balances conversely grew — a decreasing balance characterized only the very beginning of the run to $64,500.

“Since May 19th, entities with 10K-100K BTC have added +269,450 to their holdings ($12.1B),” Clemente III added, highlighting further data. “These entities have between $450M–$4.5B of their capital allocated to Bitcoin.”

Accumulation in action

Institutions have not been put off by any overriding narrative from within or beyond cryptocurrency, including China’s miner rout since May, or the ongoing saga over the United States’ infrastructure bill. Related: One Bitcoin now buys 0.6 kilograms of gold as 10-year returns turn negative

As Cointelegraph previously reported, retail exchange balances have already been heading lower for some time. As of Tuesday, the total exchange balance figure stood at 2.44 million BTC, also a three-month low.


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Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap Volume 24h
1 Bitcoin (BTC) BTC Bitcoin predictions 82.8% 24 $48 068.38 -0.43% 2.90% $904 552 592 109 $30 966 097 189
2 Ethereum (ETH) ETH Ethereum predictions 71.6% 52 $3 564.24 -1.78% 3.14% $418 997 277 161 $18 764 428 420
3 Cardano (ADA) ADA Cardano predictions 66.4% 64 $2.43 -1.86% -4.99% $77 762 171 546 $3 085 080 557
4 Binance Coin (BNB) BNB Binance Coin predictions 63.6% 70 $423.38 -1.83% -1.23% $71 186 613 232 $1 670 523 937
5 Tether (USDT) USDT Tether predictions 95.2% 1 $1.000511 0.01% 0.05% $68 288 855 645 $74 100 163 467
6 XRP (XRP) XRP XRP predictions 72.8% 55 $1.096014 -2.04% -3.72% $51 098 642 600 $2 972 959 907
7 Solana (SOL) SOL Solana predictions 56.8% 89 $149.74 -5.57% -21.61% $44 447 194 000 $3 259 409 601
8 Polkadot (DOT) DOT Polkadot predictions 58.4% 83 $36.69 2.33% 14.49% $36 235 518 897 $2 308 494 829
9 Dogecoin (DOGE) DOGE Dogecoin predictions 66% 65 $0.257382 4.84% 0.32% $33 796 922 711 $1 760 021 804
10 USD Coin (USDC) USDC USD Coin predictions 96% 1 $1.000184 0.01% 0.02% $29 237 308 733 $2 846 778 419
11 UniSwap (UNI) UNI UniSwap predictions 73.6% 56 $25.95 -4.24% 8.79% $15 869 589 993 $590 249 626
12 Terra (LUNA) LUNA Terra predictions 68.4% 67 $36.55 0.26% 12.35% $14 691 406 586 $1 543 465 878
13 Avalanche (AVAX) AVAX Avalanche predictions 65.2% 69 $64.75 9.96% 46.82% $14 264 323 937 $2 618 327 427
14 Chainlink (LINK) LINK Chainlink predictions 74% 55 $30.07 -4.45% 3.96% $13 594 035 693 $1 522 191 986
15 Binance USD (BUSD) BUSD Binance USD predictions 91.6% 1 $1.000216 0.01% 0.02% $12 747 588 570 $6 369 639 162

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