According to the latest monitoring data from on-chain source Glassnode, BTC exchange reserves have never been so low.
Everyone wants BTC.
A clear demonstration of the investor strategy is that foreign exchange reserves have fallen in recent months – and continue to fall, despite the volatile exchange rate movement.
Hodler doesn’t seem to want to trade or sell, even with constant spikes above $60,000.
On Coinbase, the largest US exchange by volume, BTC shares have plummeted by nearly $8 billion since January, or 150,000 BTC at current prices.
Coinbase, a popular destination for large institutional buyers, highlights the ongoing appetite for bitcoin, with Cointelegraph previously reporting that large tranches of BTC are leaving Coinbase’s books for cold storage.
BTC Coinbase balance table. Source: Bybt
What’s happening is that U.S. institutions and HNWIs are pulling available coins out of weak hands and pegging them as strong HODLers in response to monetary inflation, statistician Willy Woo noted last week.
The decline in the BTC coin base suggests that institutional sourcing in the US is here to stay.
Wu added that these strong hands have bought the incoming supply into the market during every price correction in the past year, with incredibly bullish results.
Balance sheet of the main BTC exchange. Source: Glassnode
GBTC unlocked with 14% discount
However, conditions remained mixed for asset manager Grayscale, as its Grayscale Bitcoin Trust ($GBTC) traded at a 14% discount to its spot price this week.
The reduction in the GBTC premium, which is close to its record high, will likely amount to freeing up cash for those who bought the stock six months ago.
At that time, GBTC shares were worth about $11.17, which represented a positive premium of about 12% over the spot price. Now, despite the negative premium, the stock is at $44.50.
Chartof GBTC stock price versus ownership volume versus premium. Source: Bybt
Gray faces stiff competition from new institutional investment vehicles as NYDIG cut its fees this week and Morgan Stanley prepares to offer one of its funds to its own investors.
frequently asked questions
How often can you buy and sell on Coinbase?
Previously, the maximum purchase allowed was $25,000 per week. For verified clients, the limit is now $25,000 per day, which is 7 times higher than our previous limits. And once your money is transferred to Coinbase, there are no restrictions on how much you can buy or sell at once.
Is it possible to hold bitcoins on Coinbase?
While your money is never 100% safe on an online exchange, Coinbase is one of the safest web wallets you can use. Coinbase keeps almost 99% of its assets in an independent cold storage facility that is not accessible – once they are in cold storage, they cannot be hacked!
What is the minimum withdrawal rate at Coinbase?
Is there a minimum amount to withdraw from my account? Yes, but the minimum amount is low so you can always have your money. These thresholds fluctuate with the exchange rate, but are typically below $0.10.
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