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Bullish: Institutional Investors' Entry Point Spotted, Analyst Sights Possible Upswing

Wed, 10/05/2022 - 13:18
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Wahid Pessarlay
Current price of Bitcoin is close to estimated entry price of Coinbase institutional clients, who some believe are market drivers, according to CryptoQuant CEO Ki Young Ju
Bullish: Institutional Investors' Entry Point Spotted, Analyst Sights Possible Upswing
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The Bitcoin (BTC) market may soon see an influx of institutional investors. According to a tweet by Ki Young Ju, the CEO of CryptoQuant, the price of Bitcoin is close to the estimated entry price of institutional investors who have been using Coinbase's services.

The analysis is based on the on-chain volume weighted average price (OWAP) of BTC outflows on Coinbase. This technical indicator is used to weigh price against volume traded to determine if a market trend is overbought or oversold, helping traders time their entries and exits from the market.

A consequence of the entry of institutions into the market at the current price could be a price upswing. This is because of the belief that institutional investors — who are also often whale-level investors — drive bullish moves in the crypto market.

Institutions still being held back by lack of regulatory clarity

The observation is coming at a time when several institutions have been showing a growing appetite for crypto adoption. Bloomberg reports that the Nasdaq, the second largest stock exchange by market cap, has been the latest institution to voice plans around offering crypto services.

While the Nasdaq has elaborate designs for crypto — including expanding into offering custody services to its clients — the company tells Bloomberg that it is waiting for greater regulatory clarity for the industry before deploying its plans. The story is similar for other institutions.

However, regulatory clarity may soon arrive for the market, especially in the U.S. The Financial Times reported that the Biden administration has urged lawmakers to speed up crypto regulation efforts.

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About the author

Wahid is an experienced writer, interested in everything decentralized since 2019.

Before joining U.Today, he wrote for some of the top DeFi and CeFi outlets, bringing in millions of views and educating readers with his knowledge of the industry.