Miners Transfer 700,000 BTC to OTC Desks Following Spot Bitcoin ETF Approval
According to CryptoQuant CEO Ki Young Ju, over the past three weeks, approximately 700,000 BTC has been moved to over-the-counter (OTC) desks commonly used by miners. This surge in activity follows the recent approval of a spot Bitcoin exchange-traded fund (ETF).
The Flow of 700,000 BTC to OTC Desks
The transfer of such a significant amount of tokens suggests that miners may be preparing to sell or trade their BTC holdings. With the approval of spot Bitcoin ETFs, miners now have the opportunity to utilize their substantial BTC reserves to facilitate OTC trades for institutional investors. This allows them to earn substantial transaction fees and potentially secure favorable pricing conditions.
Increased Whales and Institutional Investors
This shift in behavior among miners comes alongside an increase in the number of whales entering the market. There has been a noticeable rise in the volume of UTXOs ranging between 1,000 to 10,000 BTC, which is more likely associated with whales or institutional investors rather than individual traders.
Bitcoin Holding Behavior
Data shows that large Bitcoin entities’ holdings have reached a new all-time high since July 2022. Their holdings have surged from 3.694 million BTC in December 2022 to 3.964 million BTC, indicating a significant increase in demand for Bitcoin investments. This aligns with upward movements in market prices.
Conclusion: Whales and Institutions Enter the Market
While not yet reaching levels seen during the 2021 bull market, it is evident that a substantial number of whales and institutions are now entering the market. With miners transferring significant amounts of BTC to OTC desks and the increase in UTXOs held by whales, the cryptocurrency landscape is witnessing a shift in behavior and an influx of institutional investors.
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