While original whales are offloading some of their bitcoins, bigger institutional investors are buying all they can. According to CryptoQuant, an on-chain analytics service, the demand for bitcoin is outpacing its supply, despite a sell-off from long-term investors.
Institutional investors are lining up en masse to purchase the new digital gold and original ‘retail’ whales are beginning to look like boy scouts. Data from CryptoQuant revealed that outflows from bitcoin hit yearly highs shortly before the asset broke the $20,000 benchmark. A combined shortage of bitcoin on exchanges and an increase in demand from institutional buyers will undoubtedly lay the foundation for a scramble over the remaining supply. The laws of supply and demand are in play here and the only possible outcome is a price increase.
Danny Scott, CEO of Coin Corner exchange sums it up in one sentence.
“I'll repeat... liquidity crisis incoming.”
Meanwhile, Ki Young Ju, CEO of CryptoQuant, admitted to shorting Bitcoin at $20,800. He was left surprised by the whale action from institutional investors.
With $20,000 out of the way, some analysts are predicting that $55,000 is the next stop with a likely $100,000 before the end of next year.