The Powerful Hand Behind Recent Demand To Buy Bitcoin Is…?

On-chain analyst Willy Woo says a cohesive group of Bitcoin (BTC) investors could create a new wave of strong demand for the largest cryptocurrency.

Woo looks at the net flow to the exchange index, which tracks how much bitcoin is going in and out of crypto exchanges. According to him, the metric is now showing the dominance of outflows, showing that investor demand is increasing and they are willing to hold their BTC while waiting for the top crypto asset to appreciate in value.

“I think BTC is in demand.”

Net flow index to exchanges | Source: Willy Woo

Woo also said that based on the amount of coins going to whales or companies with between 1,000 and 10,000 BTC, institutions are likely behind this massive buying power.

“Maybe the money is from institutions.”

BTC amount transferred to Wal | Source: Willy Woo

The popular analyst revealed that he uses data from blockchain tracker Glassnode to add items like exchanges and ETFs to get a more accurate picture.

According to Glassnode, bitcoin balances on exchanges are currently at a three-year low, indicating easing selling pressure.

“BTC balances on exchanges just hit a three-year low of 2,505,972,824 BTC. The previous three-year low of 2,508,534,211 BTC was observed on Jan. 27, 2022.

BTC balances on exchanges | Source: Glassnode

Additionally, Glassnode said that most of the volume transferred across the Bitcoin network is dominated by large waves of institutional investors, suggesting that big players are starting to take control of BTC.

“Bitcoin movement volume continues to be dominated by large-scale transactions, with more than 65% of all transactions being greater than $1 million in value. The uptrend of institutional dominance in on-chain volume started around October 2020 when prices fell between $10,000 and $11,000.”

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