- The UTXO, which ranges from 1,000 to 10,000 Bitcoins, has grown since early February.
- Bitcoin’s Coinbase and Korean Premium indexes both rose during that period.
According to data from CryptoQuantthere has been a spike in the number of Unspent Transaction Outputs (UTXOs), ranging from 1,000 to 10,000 Bitcoins [BTC] since early February.
BTC UTXO is a benchmark that tracks the amount of cryptocurrency in a wallet address that remains untouched after a transaction is completed.
According to the on-chain data provider, the UTXO of coin holders who hold between 1,000 and 10,000 BTC has increased by 2% since February 1.
Source: CryptoQuant
Typically, when this UTXO spike occurs alongside a price increase, it often signals an increase in accumulation by institutional investors. It also implies that BTC whales may acquire large amounts of the main coin and divide them into smaller UTXOs for storage or further investment.
Commenting on the significance of UTXO’s recent surge ranging from 1,000 to 10,000 BTC, pseudonymous CryptoQuant analyst Crypto Dan said said:
“These amounts are more likely to be associated with whales or institutional investors than with individuals, and especially since the recent adoption of Bitcoin spot ETFs, they have risen sharply.”
Institutional investors are increasing their presence
According to Dan, the recent rise in UTXO for the BTC value band under consideration is “not yet as significant as the latter part of the 2021 bull market,” but still signals an influx of institutional liquidity into the market.
AMBCrypto confirmed this by assessing the coin’s Coinbase Premium Index (CPI). This metric tracks the difference between BTC prices on Coinbase and Binance. When the asset’s CPI value is positive and in an uptrend, it indicates strong buying pressure among US-based institutional investors on Coinbase.
According to data from CryptoQuant, BTC’s CPI has been above the zero line since early February. On February 14, the price even rose to a year-to-date high of 0.122, signaling an increase in the presence of institutional investors in the market on that day.
Although BTC’s CPI was nearing the midline at the time of writing, it maintained a positive value of 0.004.
Source: Cryptoquant
In comparison, while BTC’s CPI has been on a downward trend since its February 14 peak, the Korean Premium Index (KPI), which tracks the price difference between South Korean exchanges and other exchanges, has risen significantly in recent weeks.
When BTC’s KPI rises in this way, it indicates strong buying pressure among Korean retail investors.
Read Bitcoin’s [BTC] Price forecast 2024-2025
While this increased market participation has resulted in a 25% increase in the value of BTC over the past month, analyst Dan warns:
“Generally in bull markets, after a significant influx of institutional investors, new individual investors enter the market, marking the end of the bull run.”