Data Shows “Regulation Sensitive” Institutions are Long


  • As Bitcoin’s mining rewards halving fast approaches it appears that some notable investors are taking notice
  • Data suggests that large regulation-sensitive institutions are going long on BTC
  • This comes in tandem with a massive spike in accumulation rates from Bitcoin whales, signaling that investors across the board are anticipating some bull-favoring volatility

Bitcoin’s highly anticipated mining rewards halving event is less than two weeks away, and cryptocurrency investors are on the edge of their seats as they closely watch to see how it may impact the crypto’s price.

The assumption that this event will help propel Bitcoin higher hinges solely on the notion that it is not currently being priced in by investors. This seems rather unlikely, meaning that it may lead to great disappointment.

Data shows that some large investors are expecting BTC to see upside in the mid-term, although this bullishness may not stem from the halving.

Data Indicates Big Investors are Going Long on Bitcoin

Bitcoin’s uptrend in the time following its capitulatory decline to lows of $3,800 has boosted investor sentiment, signaling to many that this price may mark a long-term bottom that is followed by significant upside.

It appears that small investors aren’t the only ones who are expecting the benchmark cryptocurrency to climb higher in the days and weeks ahead, as data seems to suggest that large institutional investors are also going long on BTC.

One respected pseudonymous crypto analyst on Twitter spoke about this data in a recent tweet, explaining that CME futures are currently trading at a notable 1% premium against futures on crypto-native platforms.

“Front month CME futures have lifted to a 1% premium vs. BTC spot while crypto-native platform futures lag at par. Regulation-sensitive Western institutionals and older brokerage clients signaling more optimism into halving than other participants,” he explained.

Bitcoin

Image Courtesy of light

BTC Whales in Full Accumulation Mode as Upside Anticipation Mounts 

Institutions aren’t the only notable investors going long on Bitcoin, as the cryptocurrency’s so-called whales have also been accumulating heavily in recent times.

Data from research and analytics platform Glassnode elucidated this trend in a tweet from earlier this month, showing that this accumulation is a historically bullish sign.

“The number of $BTC whales continues to grow, hitting 2-year highs – the last time we saw this many during an accumulation phase was in 2016. This becomes interesting when we compare it with the last Bitcoin halving,” they noted.

Bitcoin

Image Courtesy of Glassnode

The halving is certainly a bullish event from a long-term perspective, but its short-term bullishness is questionable.

With that being said, the cryptocurrency’s technical and fundamental strength on its own – regardless of the halving – could be the reason why investors are growing so bullish on Bitcoin.

Featured image from Unsplash.





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