In a counterintuitive market development, institutional investors are aggressively accumulating Bitcoin (BTC) and Ethereum (ETH) even as prices face sustained declines. This accumulation is occurring primarily through over-the-counter (OTC) transfers and private channels, rather than public exchanges, which prevents immediate upward price pressure despite substantial buying activity.
Specific examples highlight this trend: an Ethereum wallet tagged as #66KETHBorrow absorbed nearly 40,000 ETH in large blocks, with single transactions exceeding $70 million, totaling approximately $1.39 billion. Simultaneously, Nasdaq-listed BitMine acquired 9,176 ETH worth $29.1 million from Galaxy Digital's OTC desk, while Anchorage Digital received 4,094 BTC (around $405 million) from sources including Coinbase, Galaxy Digital, Wintermute, and Cumberland.
Contrasting this, ETF flows show significant outflows, with Bitcoin ETFs losing $869 million and Ethereum ETFs shedding $260 million in a single week—among the largest recorded exits. Analysts like Hunter Horsley, CEO of Bitwise, suggest that the market downturn may be nearing its end, as institutional capital rotation through ETFs has disrupted traditional four-year cycles, leading to accumulation by long-term holders without retail-level panic events.
The off-exchange buying is tightening supply, potentially setting the stage for a future rally when selling power diminishes, indicating a shift where smart money buys during falls rather than rallies.
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