According to data source CryptoQuant, Institution-focused Coinbase Pro exchange registered an outflow of over 35,000 bitcoin worth more than $1 billion early Saturday.
According to Ki Young Ju, the CEO of the Korea-based blockchain analytics firm CryptoQuant, the large outflow comes a day after 12,063 coins left the exchange and represents institutional FOMO buying.
According to Coindesk, massive outflows from Coinbase Pro typically end in Coinbase’s cold wallets for custody, which is directly integrated with the exchange’s over-the-counter (OTC) desk.
As discussed in December, institutions normally transact over-the-counter in a bid to avoid influencing the spot market price.
Bitcoin’s rally from October lows near $10,000 has been mainly fueled by institutional demand. Over the last four weeks, the ascent has gone ballistic with prices rising from $19,000 to over $30,000.
While Ju’s claim that institutions are currently buying on fear of missing out can be challenged, there is evidence that persistent demand from big players is creating a supply squeeze, allowing for a continued price rally.
For example, at least 47,000 bitcoins have left Coinbase Pro in the first two days of the year, while miners have minted just over 1,700 bitcoin. Today, Bitcoin rose from $29,800 to new record highs over $33,000 early and was last seen changing hands near $31,600.
According to CoinDesk 20 data, the cryptocurrency is already up 10% during the current year, having scored a 300% gain past year.