Recently Released Data Shows Wealthy Coinbase Users Stil Hodling Bitcoin Since December 2020

According to reports, over 10k BTC bought by institutions on Coinbase since 2020 have not yet been sold.

Recently Released Data Shows Wealthy Coinbase Users Stil Hodling Bitcoin Since December 2020 | Coinscreed

Bitcoin (BTC) price is down more than 50% after hitting $69,000 six months ago, but the drop has done little to force some of its wealthiest investors to sell.

Notably, since the fourth quarter of 2020, the number of bitcoins in Coinbase escrow for institutional clients has increased by 296%, showing that most investors have decided to hodl their investments despite the year-on-year decline in the price of BTC 2020 has fallen well over 50% from its all-time highs.

For example, institutions that deposited 10,939 BTC (~$335 million at today’s price) in Coinbase Custody in December 2020, when BTC/USD was around $23,000, have not moved since according to CryptoQuant data shown in the chain.

CryptoQuant CEO Ki-Young Ju noted:

“For most cases, the same amount of BTC is still in the (custodian) wallets, which flowed out from Coinbase for highly likely institutional purchases in December 2020.”

If that’s the case, these institutions are currently taking 30% of the profits from their BTC investments. Meanwhile, his decision not to ease his bitcoin positions even as the BTC/USD pair plummeted more than half underscores his strong “hodling” sentiment.

This also points to the ability of the institutions to withstand further price declines in bitcoin, at least until it falls below the investors’ equilibrium level of $23,000.

Isn’t the Bitcoin Bear Market Over Yet?

Bitcoin price has been floating in the $29,500-$30,500 range since May 12, underscoring the market’s indecisiveness in an environment of higher interest rates.

However, several technical analysts expect BTC’s price to continue its prevailing downtrend.

For example, PostyXBT, an independent market analyst, argues that the token could next drop to its 200-week moving average (the $20,000-$22,000 range) as shown in the setup below.

Meanwhile, Popular analyst Rekt Capital adds that a decline toward the 200-week MA could also result in Bitcoin forming a bearish wick that could push its price to $15,500-$19,000.