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Investors are serious about doing business, as current values are more than appealing to potential investors.
Another day, another increase in Bitcoin (BTC) leaving global exchange Coinbase as funds flood into the world’s biggest cryptocurrency.
According to data from the on-chain tracking service Glassnode, 12,354 BTC ($694 million) were removed from the Coinbase order book in a single hour on Friday.
Coinbase sees another BTC balance squeeze
Coinbase, the largest exchange in the United States, has been the site of several big Bitcoin buy-ins this year.
As previously noted, unexpected tranches of more than 10,000 BTC going to private wallets are not unheard of, but they do show a preference to at least store Bitcoin for the long term rather than keep it within easy reach of a point of sale.
For analyst Lex Moskovski, the type of investor behind such transactions remains uncertain — it could be a private individual or small group, as well as an institutional investor or corporate client.
“Institutions or not, that’s still a significant outflow,” he commented on the Glassnode data.
“Healthy bull market”
The data comes hand in hand with on-chain indicators staying firmly bullish. This week, Glassnode co-founder Rafael Schultze-Kraft highlighted a surge in Bitcoin’s so-called realized cap (Rcap) likewise supporting the broad buying thesis.
The realised limit is a calculation of Bitcoin’s market capitalisation dependent on the most recent price movement of each coin. It yields a slightly different total from the conventional market cap and gives invaluable insight into market composition and trader sentiment.
“Unprecedented capital inflows into Bitcoin as measured by realized capitalization,” Schultze-Kraft tweeted on Friday.
“Over the past 6 months, realized cap has surged a whopping $250 billion – an increase of ~200%. Healthy bull market.”
He added that realized cap has increased by the same amount as the entire traditional market cap of Bitcoin as measured in December 2020.
Rcap, in comparison to standard cap, will also rise dramatically until signalling the end of the bull market. MVRV, which calculates the ratio of the two metrics, was 4.4 this week, down from 7.6 in February and more than 10 at previous market cycle peaks.
“We have yet to witness true fomo from institutions. “It’s on its way,” Timothy Kim said in response to the Glassnode numbers.