A huge sell wall at $20,000 may see a major transfer of wealth from whales to institutions based on current data.
Bitcoin (BTC) whales appear to be selling to institutions as the supply squeeze tightens below $20,000.
Data from various sources shows that while more BTC returned to exchanges this week, large-scale buyers are still creating more demand than supply can meet.
Statistics from on-chain analytics service Coin98 confirmed that investment giant Grayscale bought twice as much Bitcoin as miners could create in November.
Together with Square and PayPal, the other major corporate actors requiring more and more BTC stocks, Grayscale is creating a supply imbalance to which price gains are the only logical outcome.
This scenario set the stage for December with Grayscale continuing its buying of Bitcoin, totalling over 7,000 BTC in just 24 hours as its Bitcoin Assets Under Management now exceed 10.5 billion as of Dec. 4.
Having bounced off lows of $18,100 and returned to circle $19,000, BTC/USD looks primed for another test of the seminal level, but selling dynamics remain unusual. With sell walls at $20,000 still firmly in place, longtime hodlers and whales looking to exit have reliable buyers in the form of Grayscale and other institutions.
At the same time, total Bitcoin addresses in profit versus when coins were placed in them hit new record highs on Friday, according to the latest data from Glassnode.
On Wall Street, meanwhile, news on Thursday came that Bitcoin and hundreds of altcoins would compose new cryptocurrency indexes by S&P Dow Jones Indices from January 2021.