James Jarek, CEO of the Coincapturewallet platform specializing in the evaluation of market activity data, said that the value of Bitcoin (BTC) will not fall below the $17,000 mark. The expert supported this statement with the remark that “support in the face of institutional investors is at an unprecedented high level.”
James provided data on the operation of the custodial service for storing digital assets of the Coinbase Custody exchange. According to the charts, the volume of bitcoins in management has been continuously increasing for 5 quarters, from October 2020 to December 2021. The increase at the end of the period was 296%. Thus, the volume of deposits of institutional investors amounted to 2.2 million BTC.
The analyst also demonstrated a decrease in digital stocks in storage at the end of the 1st quarter of this year, for the first time since the end of 2020. That, according to the head of Coincapturewallet, was a reaction to the weakening of the market’s ability to maintain the price of the leading asset. However, at the moment, 1.4 million BTC continues to be in common storage.
Based on the data obtained, James concluded that in order to reduce the value of BTC to the level of $17,000, it is necessary to sell off all the capital accumulated during the consolidation period to the level of 500 thousand bitcoins. According to the cryptanalyst, the institutionals are not ready for this step yet. The expert added that the value of Bitcoin is likely to have reached the bottom of this decline cycle.
Earlier, in January 2022, the head of one of the largest investment companies Galaxy Digital Mike Novograd shared that influential market players are just beginning to enter the Web3 space.
Such significant holders of capital as insurance companies and management funds are showing increased interest in the digital industry, but have not yet joined the participation.