As the bitcoin price continues to dip in the past few days, institutions have also seized the opportunity to amass more digital currency to their reserve.
At the time of filing this report, the Bitcoin price has dropped from its all-time high (ATH) of $61,699 to 50,000 plus.
Those who use to cryptocurrency market trend, know that many investors are seizing the opportunity of the all-time high of $61,699 to take some profits in their investment.
Incidentally, there are equally many cryptocurrency investors who selling off their bitcoin as a result of fears of the unknown.
On the other side of the divides, institutions who felt they have been left behind in the acquisition of bitcoin are now seizing the opportunity to buy the bitcoin at a cheaper rate.
Following this latest drop, onchain analyst Willy Woo speculates that another institutional investor could be buying the dip.
In his tweet on March 23, Woo said that the large volumes of coins that are being removed from exchanges, are in fact flowing to ” strong hands with minimal history of selling.” However, it is the involvement of Coinbase, which has facilitated large BTC acquisitions by U.S. entities in past, that has convinced Woo that a yet-to-be-announced institution is currently buying.
Consequently, in his warning to holders currently selling, Woo tweeted:
Anyone selling right now is cray-cray. Seriously strong long term holders are buying this dip.
In his reaction, a tweeter user, “Exonumia” agreed with Woo’s warning to holders.
He: “Sell for what? Exchange the hardest asset on earth for dollars which are inflating this at 20% per year? That makes zero sense.
”There is no need to sell bitcoin. It’s the perfect collateral asset and SOV.”
Moreover, other Twitter users are in agreement with Woo’s assertion that the aggressive drop in the coins on exchanges is a signal that institutions are buying. For instance, a user named “Wages of Freedom” said: ”Wow, the recent drop in coins on exchanges is aggressive. Seems like the $60k milestone hit a profit target for a good chunk of investors, but a huge accumulation by convicted buyers.”
But Phive26, a Twitter user while reacting to Woo’s post questioned the data that is used to arrive at the conclusion that an institution is currently buying.
READ ALSO: Bitcoin Can Displace Gold But Can Replace Dollar, Says Federal Reserve Chairman
In his tweet, Phive26 said: “We have seen several times people mistaking internal transfers of crypto for withdrawals. How do you ensure not to bring internal transfers into your withdrawal data?”
Bitcoin reports that the price of bitcoin (BTC) jumped 3% higher after Tesla and Elon Musk revealed the electric car company will now accept BTC payments.
