Bitcoin’s price has been on a roller coaster this week, erasing almost all of its 2021’s gain. Yet, according to on-chain data, institutions have continued their purchases of bitcoin and bid massively on bitcoin treasury bills despite the volatility and near-term bearish market sentiment.
Data shows the number of addresses with 2,000 or more bitcoin (often referred to as “whales” is on the increase this week while bitcoin’s price dropped, dipping below $30,000 on Thursday. The count of such addresses dropped in late December and has spiked again since the beginning of 2021.
As well, the number of the total bitcoin transactions from various wallets to bitcoin treasury bills remains high, according to recent data from blockchain analytics firm. However, the ratio of bitcoin transfers involving all exchanges to all bitcoins transfers network-wide has not gone up, indicating that most transactions were done through over-the-counter (OTC) deals, a preferred approach by institutional investors.