Bitcoin whales sold to institutions as grayscale add 7,188 BTC in 24 hours

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Bitcoin (BTC) whales appear to be selling to institutions as supply tightens below $ 20,000.

Data from various sources shows that while more BTC is returned to trading this week, large-scale buyers are still creating more demand than supply can meet.

Trade Grayscale Entries and Buy-Ins

Coin98 chain analysis service statistics confirmed this investment giant Grayscale bought twice as much Bitcoin as miners could create in November.

*Grayscale Bitcoin purchases compared to the stream in November 2020. Source: Coin98 / Twitter*

With Square and PayPal, the other big players in the business needing more and more BTC shares, Grayscale is creating a supply imbalance of which price gains are the only logical outcome.

This scenario set the stage for December with Grayscale continuing to buy Bitcoin, totaling over 7,000 BTC in just 24 hours as Bitcoin. Assets under management now exceed 10.5 billion as of December 4.

*Grayscale Bitcoin is buying a 6 month chart. Source: Bybt*

Simultaneously, this week Bitcoin broke all-time highs and challenged $ 20,000, only to deal with massive selling pressure.

After rebounding from lows of $ 18,100 and returning to the circle of $ 19,000, BTC / USD looks set for another test of the founder level, but the selling momentum remains unusual. With $ 20,000 selling walls still firmly in place, longtime fishermen and whales looking to get out have dependable buyers in the form of Grayscale and other institutions.

*Bitcoin sells walls against BTC / USD on December 4th. Source: TensorCharts*

Evidence points to an increase in the flow of whales to the exchanges this week, which coincided with the $ 20,000 attempt. If the sale was already having the effect of keeping prices low, then BTC would have to fight its way from the whales into the stronger hands of Grayscale and its customers.

*3-year graph of Bitcoin stock market holdings. Source: CryptoQuant*

CNBC: The rich are ‘charging’ on Bitcoin

The phenomenon has even caught the attention of the mainstream media.

“The total of accounts buying over $ 1 million worth of Bitcoin and then removing it from the exchange has skyrocketed,” CNBC reported Thursday.

“It’s up 180% from 2017 to this year. Analysts say the signals that wealthy investors load up on Bitcoin and then store it offline to store it in a slightly more secure place.