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Top Tier Coinbase Customers Are Still Holding Bitcoin Since Late 2020

According to Coinbase, institutions that purchased 10,939 BTC in December 2020 have not yet sold....
Photo by Batyrkhan Shalgimbekov

According to Coinbase, institutions that purchased 10,939 BTC in December 2020 have not yet sold.

Bitcoin’s ( BitcoinTC ) price fell by more than half after reaching $69,000 six months prior, but it did not force its most wealthy investors to sell.

Notably, the number Bitcoin held by Coinbase Custody was up 296% in Q4 2020. This is a sign that most investors have decided to “hodl” onto their investments, despite the fact that the price of Bitcoin has fallen well above 50% from its highs.

In this example, institutions that had deposited 10,939 BTC with Coinbase Custody ($335 Million at May 31’s prices) in December 2020 when BTC/USD was about $23,000 have not moved since. On-chain data from CryptoQuant indicates.

Ki Young Ju, CEO at CryptoQuant, stated:

“For most cases, the exact same amount of Bitcoin is still in the (custodian] wallets. This was transferred out from Coinbase in December 2020 for highly probable institutional purchases.”
These institutions currently have 30% profit from their BTC investments. Their strong “hodling” sentiment is reflected in their decision to not unwind Bitcoin positions even though BTC/USD fell by more than half.

This also indicates institutions’ ability to withstand further falls in Bitcoin prices, at least until they drop below $23,000 breakeven for investors.

Is the Bitcoin bear market still going strong?
Since May 12, Bitcoin’s price fluctuated between $29,500 and $30,500, underscoring market indecisiveness in an environment with higher interest rates.

However, technical analysts predict that BTC’s current downtrend will continue.

PostyXBT, an independent market analyst , argues the token could fall towards its 200-week moving mean (the $20,000-22,000 range next), as shown below.

Rekt Capital , a popular analyst, adds that Bitcoin could drop towards the 200-week MA, which could cause it to form a bearish candle, which could lower its price to as low $15,500-19,000.

Felipe Rodriguez

Felipe Rodriguez

Felipe states he has super powers, some argue that case but he does come up with some very clear predictions. Felipe is based in the US and frequently travels to Brazil where he was born. He is a journalist of the future and has a portfolio of crypto projects he has worked with. Felipe always says "The future doesn't scare me as much as the past, crypto is here to stay but only time will tell where it will take us".
Felipe Rodriguez

Felipe Rodriguez

Felipe states he has super powers, some argue that case but he does come up with some very clear predictions. Felipe is based in the US and frequently travels to Brazil where he was born. He is a journalist of the future and has a portfolio of crypto projects he has worked with. Felipe always says "The future doesn't scare me as much as the past, crypto is here to stay but only time will tell where it will take us".

© 2022 The Daily Encrypt. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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