In the last couple of months, institutional investors and some of the richest people in the world have shown that they are bullish on Bitcoin. Not only have they been talking about the digital asset, they have also been buying vast amounts of it.
One such move was quite evident yesterday when an investor withdrew a colossal chunk of the coin from Coinbase. The transaction was for 12,638 BTC worth about $770 million and was done in under 10 minutes.
— Lex Moskovski (@mskvsk) April 11, 2021
This is not the first time that large institutions are buying and withdrawing huge amounts of BTC. All through March, financial institutions and other institutional players have been buying Bitcoin in high volumes and then withdrawing to private custody wallets. The move comes as an increasingly high number of institutions now see Bitcoin as a hedge against inflation.
With governments worldwide taking unprecedented stimulus programs all through the pandemic, the demand for BTC as a hedge could keep rising. The growing demand for Bitcoin was quite evident yesterday when the foremost cryptocurrency value surged to over $60k.
Another crypto that seems to be drawing demand from institutional players is Ethereum. Institutions and wealthy individuals have been buying it up, which is quite evident in its current price surge, hitting $2200 at some point over the weekend.
This has triggered a rally across the market, with many altcoins retesting and surpassing their all-time highs. It will be interesting to see how the price plays out in the coming days, now that miners have started selling BTC again, after initially mining and HODLing.