Bitcoin Institutional Trading Volume on Coinbase Reaches 75%, Strong Institutional Demand
BlockBeats News, August 13th, Charles Edwards, founder of the crypto quant digital asset fund Capriole Investments, stated that Coinbase has seen a significant outflow of institutional funds. With US inflation cooling down and the market expecting a rate cut next month, Bitcoin has once again become the target of institutional investors. Capriole data shows that this Tuesday, 75% of the volume on Coinbase came from institutional investors. "Every reading above 75% has resulted in a higher price one week later."
Capriole estimates that this week, institutional "excess demand" is about 600% of the daily output, while the current daily Bitcoin production is around 450 coins. Just on Tuesday, Bitcoin corporate treasuries added 810 BTC, and Monday's accumulation was even larger, close to 3,000 BTC. These actions come amid July's US Consumer Price Index (CPI) data coming in below expectations and Bitcoin's price making a push towards its all-time high.
When asked why institutional investors are "buying frantically," Edwards specifically pointed to expectations regarding interest rates: "Because yesterday's inflation data met expectations, this means the Fed is almost certain to cut interest rates next month and may cut rates three times this year. Given the poor employment background, the market is even assessing the possibility of a significant 0.5% rate cut. Downward rates = rise in risk assets, and Bitcoin has always been the fastest horse."
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