Square was just the tip of the iceberg – on-chain data shows institutions are piling up Bitcoin
Square’s decision to buy BitQT software and keep it in reserve has delighted the crypto community.
The decision was made after MicroStrategy made a similar investment a few months ago, albeit on a larger scale.
If this trend gains momentum while the dollar continues to experience unprecedented inflation, it could be a catalyst for a massive BTC rebound
The importance of this fact shouldn’t be underestimated – and the data also seems to suggest that Square may just be the „tip of the iceberg.“
The data on the chain seems to suggest that a myriad of other large, unannounced investors (and possibly companies) are currently in full bitcoin accumulation mode.
Bitcoin is currently expressing some notable signs of strength as its price has overcome major resistance in the region below $ 11,000.
It is important to note that the selling pressure has been quite intense here and could result in a disadvantage if the bulls are unable to maintain momentum.
This is not an ordinary rally, however, as the price is being driven by BTC in the hope that the cryptocurrency will continue to be adopted by companies as a reserve currency.
A well-respected on-chain analyst notes that MicroStrategy and Square are just the „tip of the iceberg“ – pointing to on-chain data suggesting that other major investors have pushed BTC up at a rapid pace.
Bitcoin is experiencing a remarkable boom
At the time of writing, Bitcoin is trading well over $ 11,000, marking a remarkable rebound from the recent lows of $ 10,600 that were set just a few days ago.
BTC has been consolidating lately, with cryptocurrency barely gaining momentum due to declining news regarding the CFTC’s persecution of the co-founders of BitMEX.
However, yesterday’s news from Square managed to bring the trend back into the bulls‘ favor.
Data: Square and MicroStrategy are just the beginning
Prominent on-chain analyst Willy Woo writes in a tweet that Square and MicroStrategy are likely not the only companies currently accumulating Bitcoin .
Pointing out the massive reduction in spot BTC available on the exchanges, he notes that the collective buying by the above two companies is only a small fraction of the total supply reduction that has been seen lately.
“The purchase of 4,709 BTC by Square and 38,250 BTC by Microstrategy is the tip of the iceberg. In the past 8 months, speculative stocks on the exchanges have been reduced by 250,000 BTC, suggesting that many other * unannounced * investors have withdrawn coins from the market. “
If another publicly traded company makes a similar announcement, it may officially be considered a trend and could become a catalyst for serious growth.