Bitcoin’s rate has been on a roller coaster this current week, wiping away nearly all of its 2021’s advances on Thursday. Still, according to on-chain data, institutions have maintained their purchases of Bitcoin in spite of the volatility and short-term bearish market attitude.
Statistics from on-chain data website Glassnode indicates the number of crypto addresses with 1,000 or more Bitcoin (frequently called “whales”) continued to rise while Bitcoin’s price plunged, dropping below $30,000. The count of these addresses plummeted in late December and has spiked again at the beginning of the new year.
Similarly, the number of the total Bitcoin contracts on the network stays high, as shown by data from South-Korean blockchain analysis firm CryptoQuant. Nevertheless, the ratio of Bitcoin transactions involving all exchanges to the total Bitcoins transfers network-wide has not increased, indicating that most trades were done through the so-called over the counter deals. This represents a desired tactic of institutional investors.
For example, a sizeable buyer during the drop appeared early Friday, when MicroStrategy revealed that it bought 314 additional Bitcoin for $10 million through the most recent market selloff.
