
Institutional capital inflows into Coinbase Prime have surged ahead of President Donald Trump’s inauguration On January 20, with hedge funds, family offices, and large investors leading the charge.
OTC Activity Spikes
CryptoQuant reported today on its X account that significant capital inflows into the Coinbase exchange surged this week.
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Institutional clients, mainly using Coinbase Prime Brokerage Services, deposited around $13 billion in capital into the US’s biggest crypto exchange.
Institutional client activity accordingly spiked, with CryptoQuant recording over 140,000 active clients this week.
The increased inflows to Coinbase Prime point to higher over-the-counter (OTC) trading activity, with CryptoQuant noting that this is a preferred Bitcoin accumulation method for US institutions.
โWhen the whales move, the market feels it,โ the message noted.
Bitcoin Balance on Exchanges Hit 7-Year Low
Meanwhile, Bitcoin reserves on crypto exchanges have reached their lowest level in seven years.
CryptoQuant data shows that on January 9, when Bitcoin’s price fell to $92.5K, BTC reserves on exchanges dropped to 2.395 million.
Currently, just over 2.402 million Bitcoins remain available across cryptocurrency trading platforms.
Over the past week, Bitcoin price increased by more than 7.3%, with the world’s largest crypto surpassing the $100K mark again and reaching $102K on Friday. As of this writing, Bitcoin is trading at a price slightly above $101.95, according to CoinMarketCap.
Why This Matters
The surge in institutional capital and OTC trading signals growing confidence in Bitcoin. With exchange reserves at a seven-year low, the tightening supply could indicate upward price pressure, suggesting a potentially bullish outlook for Bitcoin.
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