Bitcoin on chain analysis: The stock market balance is falling as institutional investments increase

Today Bitcoin Magazine looks at Bitcoin (BTC) on-chain indices, especially those related to exchanges and institutional investors.

The BTC balances held in stock exchange addresses decrease again, while institutional investment has increased.

BTC credit on the exchange

The total amount of BTC held in exchange addresses has decreased since the low in March 2020.

The lowest value reached was on April 12 at 2,461,840 BTC. Back then, the price of BTC was just under $ 60,000.

However, the recent downturn has led many investors to sell their BTC. And this leads to an increase in the number of tokens held in exchange addresses.

Source: Glass knot

However, another short-term downtrend began on June 26th. There was a sharp drop on July 7 in particular, when a total of 31,045 BTC was withdrawn from the exchanges.

Source: Glass knot

In addition, the financing rates have been mostly negative since June 16. This means that traders who are short positions pay a fee to those who are long positions.

On July 5, the funding rate was only -0.001%, but then rose to 0.017% on July 7, before falling again.

Although the funding rate is currently negative. However, this shows that futures traders’ confidence in the market is growing.

Source: Glass knot

Institutions invest BTC

Despite the gradual decline in price, institutional interest in BTC has not waned.

Especially the two best-known exchange-traded funds, Grayscale and “The Purpose Bitcoin ETF”. They have steadily increased their purchasing power since March, which means they are “buying the dip”.

Source: Twitter

In particular, “Purpose Bitcoin ETF Holdings” was the most popular place with 22,411 BTC on July 6th.

Source: Glass knot

Although Grayscale Premium was trading 21.23% below real value on May 13, it is also showing a positive rebound.

It is currently trading at just under 11.51%. This is a sign of increasing confidence in the index. Despite the fact that the value remains negative.

Source: Glass knot

SN_Nour

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