Wealthy Coinbase customers are still ‘holding’ bitcoin since December 2020, data shows

Bitcoin (bitcoin) prices fell more than 50% after peaking at $69,000 six months ago, but the slump hasn’t forced some of its wealthiest investors to sell.

Notably, institutional clients have seen a 296% increase in the amount of Bitcoin held in Coinbase custody since Q4 2020, suggesting that despite BTC prices falling more than 50% from their all-time highs, most investors still decide “hold” their investments.

For example, an institution that deposited 10,939 BTC (~$335 million at today’s prices) to Coinbase Custody in December 2020, when BTC/USD was ~$23,000, has not moved on-chain since then data From the CryptoQuant show.

Ki Young Ju, CEO of CryptoQuant stated:

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

Coinbase hosted wallet comparison. Source: CryptoQuant/Ki Young Ju

If this is the case, these institutions are currently sitting on 30% of BTC investment profits. At the same time, they decided not to close their Bitcoin positions, underscoring their strength even as BTC/USD plunged by more than half”hoarding“mood.

It also shows that institutions are able to withstand further declines in bitcoin’s price, at least until it falls below investors’ breakeven level of $23,000.

Is the Bitcoin Bear Market Over?

Bitcoin’s price has been oscillating between $29,500 and $30,500 since May 12, underscoring the market’s indecision in a higher interest rate environment.

related: On-Chain Data Flashes Bitcoin Buy Signal, But Bottom May Be Below $20K

But several technical analysts expect the price of BTC to continue its general downtrend.

For example, independent market analyst PostyXBT, debate Next, the coin could drop to its 200-week moving average ($20,000-$22,000 range) as shown in the setup below.

BTC/USDT weekly price chart. Source: PostyXBT/TradingView

Meanwhile, Popular analyst Rekt Capital Add to A drop to the 200-week SMA could also create a bearish wick for Bitcoin, which could keep its price to a minimum $15,500-19,000.

The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk and you should do your own research when making a decision.