As the price of Bitcoin (BTC) slipped to below $40,000, data shows increased demand from institutional investors. According to data from CryptoQuant, a spike in Bitcoin outflows has been recorded, with 30k BTC leaving Coinbase Pro.
The rise in exchange outflows noted on Coinbase Pro is not an isolated event, as similar behavior from institutional investors was marked in March and early April.
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As pointed out by Ki-Young Ju, the CEO of on-chain analytics platform CryptoQuant, institutional interest in BTC “might be the big narrative” in the crypto space once more.
Bitcoin Falls to Monthly Low as Sell-Off Accelerates
Bitcoin dropped to the lowest levels seen in more than a month as investors withdrew money from the world’s largest cryptocurrency. The leading asset fell by as much as 4.2% on Monday, April 18th, to trade as low as $38,580.
The 24 hour price chart for Bitcoin (BTC). Source: Tradingview
According to market analyst John Roque, Bitcoin technical charts are forecasting a further drop in price as the asset is “not close to an oversold reading.” Bitcoin’s near-term support is at $35,000, and, should it fail to hold, Bitcoin could dip as far as to retest $30,000.
On the Flipside
- As a result of the 4% price drop, the liquidation of Bitcoin and Ethereum traders across exchanges has crossed $230 million in the past hour. Long positions account for 88.72% of the wipeouts.
Why You Should Care
The recent Bitcoin outflows from Coinbase and other exchanges are seen as an indicator for the return of institutional investors to the crypto space.
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