A Popular On-chain Analyst Stated Bitcoin Is Quietly Being Purchased By Institutional Investors
- Willy Woo, a well-known on-chain specialist, believes that institutions may be the driving force behind the current Bitcoin (BTC) increase.
- The crypto trader believes the investing institutions are existing crypto funds that used stablecoins to ride out the bear market.
Willy Woo, an on-chain analyst, claims that institutional investors are quietly allocating to Bitcoin, sparking BTC rallies.
Willy Woo, a well-known on-chain specialist, believes that institutions may be the driving force behind the current Bitcoin (BTC) increase. According to Woo’s one million Twitter followers, the BTC increase corresponds with a new pattern of billions of dollars worth of stablecoins streaming onto exchanges “during work days exclusively.”
“It appears to me to be the heat signature of large institutions doing the buying. The inflows occur over a 16-hour period, with the quiet zone being Asian work hours. This points to Western institutions in the United States and Europe.”
At the time of writing, Bitcoin is now worth $23,079 USD. The top-ranked crypto asset by market capitalization has risen about 40% since the beginning of 2023, while it has generally tracked sideways in the last week. Woo also observes that spot market flows, rather than derivatives, have been driving the rise. The price is being moved by spot purchasing, while derivatives are behind. Long-term institutional investors are pouring in via spot purchasing and shifting to custody, implying.
The crypto trader believes the investing institutions are existing crypto funds that used stablecoins to ride out the bad market. If you are a fund, remember that you will bank with Silvergate or Signature Bank. Silvergate had a bank run, and Signature reduced its crypto exposure. In recent months, stables have been the ideal location to keep USD.
Despite this year’s price advances, Bitcoin is still more than 66% lower than its all time high of roughly $69,000, which it reached in November 2021.
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