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UTXOs ranging from 1000 to 10,000 bitcoins have been increasing since early February. During this period, both the Coinbase and Korean premium indexes for Bitcoin have seen upticks.
According to data from CryptoQuant, the number of Unspent Transaction Outputs (UTXOs) has surged since early February, ranging from 1000 to 10,000 bitcoins [BTC].
BTC UTXO is an indicator used to track the amount of cryptocurrency left untouched in wallet addresses after transactions are completed.
According to on-chain data providers, since February 1, the UTXOs held by coin holders with 1000 to 10,000 bitcoins have grown by 2%.
Generally, when a surge in UTXOs coincides with a rise in price, it typically indicates a sharp increase in accumulation by institutional investors. This also suggests that BTC whales may be acquiring a significant amount of leading coins and splitting them into smaller UTXOs for storage or further investment.
CryptoQuant analyst Crypto Dan, speaking about the significance of the recent increase in UTXOs from 1000 to 10,000 BTC, commented:
"These amounts are more likely to be associated with whales or institutional investors than with individuals, especially since they have been increasing rapidly since the recent approval of a Bitcoin spot ETF."
Increasing Influence of Institutional Investors
Dan noted that while the recent uptick in UTXOs for the considered BTC value range "is not as significant as it was in the later stages of the 2021 bull market," it still paints a picture of institutional liquidity flowing into the market.
AMBCrypto confirmed this by evaluating the Coinbase Premium Index (CPI) for coins. This metric tracks the difference between Bitcoin prices on Coinbase and Binance. When an asset's CPI is positive and trending upward, it indicates significant buying pressure from US institutional investors on Coinbase.
According to CryptoQuant's data, BTC's CPI has remained above the zero line since early February. On February 14, it even peaked at 0.122, the highest so far this year, indicating institutional investor participation in the market that day.
While nearing the midline as of the time of writing, BTC's CPI still remains positive at 0.004.
In contrast, although Bitcoin's CPI has been declining since its peak on February 14, the Bitcoin Korean Premium Index (KPI), which tracks the price difference between Korean exchanges and other exchanges, has seen a significant increase in the past few weeks.
When BTC's KPI rises in this manner, it indicates a surge in buying pressure from Korean retail investors. |
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Post time 5-3-2024 20:37:59