According to the data shared by CryptoQuant on Friday, a massive number of 13,000 Bitcoins was purchased by the American Hedge funds through Coinbase as the demand for Bitcoin has been increasing exponentially.
13k Bitcoins Withdrawn
Ki-Young Ju, the company chief analyst of CryptoQuant, shared a tweet in which he stated that around 13k BTC was purchased and then removed from the biggest digital exchange of the US, Coinbase, on Friday.
He said that according to him, the reason for these huge Bitcoin transactions was the dip of the traditional macro environment, for example, the 10-year Treasury bonds, and not due to the miner selling, whale deposits, or lack of institutional demand.
Hedge Funds Leap on Every Bitcoin They Can Get
These BTC were acquired by the US hedge funds as their prices got low due to the market correction. This amount of Bitcoin has obtained at a rate of $48k per coin, and the total value of these transactions was around $624 million, according to Ki Young Ju.
13k Bitcoins were purchased on Friday between the timeframe when the price of Bitcoin went up from $45k to $48k and then fell back to $45k again, stated the CryptoQuant CEO.
Currently, Bitcoin is being traded around the price of $46k, and BTC bought by the hedge funds were moved into storage wallets away from Coinbase. As the price of Bitcoin is going down because of the market correction, more and more hedge funds are acquiring Bitcoins as much as they can and are putting them away in cold storage.
Ki-Young Ju also posted a tweet stating the increase of premiums by Coinbase. This creates a lot of pressure on the investors.
IPO Incoming from Coinbase
Coinbase exchange has filed a request with the Securities and Exchange Commission, the US regulator of the crypto market, asking for a launch of their IPO.
The SEC has had a rocky relationship with Coinbase in the past as they sued Coinbase for allowing XRP trading, which is unregistered security according to the SEC, and Coinbase also collected their share of fees from those trades. The shares of Coinbase would be sold and purchased under COIN on NASDAQ.