It is now clear that demand for bitcoin is still high even at $50,000. The big buyers continue to dwarf the smallholders in the latest stage of this bull run. Institutional investors and whales have made the most out of the latest bitcoin ‘dip’ by buying big, data suggests.
In a March 9, 2021 update, on-chain analytics service Material Indicators said that buy orders of $100,000 and higher on Binance have reached all-time highs. Binance is the biggest crypto exchange by volume globally.
Big Bitcoin Buyers Are Not Hesitant
In huge contrast to orders that are worth less than $100,000, bigger buys are more frequent than ever before in the history of Bitcoin. Smaller allocations have plunged in 2021, matching a current narrative that institutions are accumulating and removing a lot of liquidity on crypto exchanges that came up during the recent bull run.
Material Indicators commented on Twitter alongside a chart:
“The $100k – $1M class is now also about to make a new ATH. Meaning, they bought the dip.”
Previously, Material Indicators voiced their worries about this week’s price surge, saying that whales might ‘sell into’ the surge, producing a repeat of the run to $58K all-time highs and subsequent 25% correction.
While it has not yet come to pass, analysts also said that macroeconomic factors were also having a different effect to that which was expected. Whale orders declined after news that the US’ $1.9 trillion stimulus package had passed the Senate. Also, China providing support to tech stocks had the opposite effect. Based on previous reports, technology had led to a dramatic change of fortunes on the equities markets.
$54,500 Peak Followed Major Coinbase Buy
In the meantime, another batch of almost 12,000 BTC left professional trading platform Coinbase Pro as an example of major bitcoin allocations continuing at the current prices. Quant analyst Lex Moskovski commented on data published by fellow on-chain analytics resource Glassnode:
“That happened just before the recent surge in price. Nice coincidence.”
Bitcoin hit 2-week highs of $54,550 earlier on Tuesday.
Zooming out, the growing institutional involvement around bitcoin may fuel the crypto’s entry as a standard for investors alongside traditional plays. The founder and CEO of ARK Investment Management, Cathie Wood, told CNBC this week:
“We do think it will behave, actually, I would say more like the fixed income markets, believe it or not.”
Binance order books show the next major BTC/USDT resistances for the bitcoin bulls are pegged around $58,000 and $59,500.
