The price of bitcoin may be falling below $40,000, but the latest data show no let-up in demand from major investors.
Ki Young Ju, CEO of CryptoQuant, an on-chain analytics platform, believes institutional purchases of Bitcoin could once again become the "big narrative" in cryptography.
Large BTC transfers from Coinbase Pro
Ki highlighted data from Coinbase Pro, the specialist trading arm of US exchange Coinbase, which confirmed that large numbers of bitcoins continued to leave its books.
In one day this week, a total of 30,000 bitcoins were transferred, which is not the first time -- similar activity occurred in March.
Coinbase Pro Bitcoin Reserve vs. BTC/USD chart source :CryptoQuant
"There were 30,000 bitcoin outflows from Coinbase today," he noted.
"Agency purchases are likely to be the big narrative again because the executive order didn't create any obstacles."
The US executive order, which aims to investigate all aspects of the cryptocurrency ecosystem, does not appear to have acted as a deterrent to large investors seeking exposure.
As Cointelegraph reported this week, the trend is evident across exchanges, with April's total outflows now trying to match March's.
The reduction in supply contrasts with a troubling macro picture that continues to weigh on risky assets, including cryptocurrencies.
Bitcoin's correlation with equities is itself subject to central bank policy and needs to be broken for things to improve, but analysts say the process is far from smooth when it happens.
"Correlations eventually break -- for a variety of reasons," commentator Dylan LeClair explained earlier this week.
My guess is that the credit system will eventually collapse and volatility will explode. Bitcoin followed, but more because of derivatives traders than spot sales. BTC bears have a habit of exiting on every rally as spot supply continues to be constrained."
Terra continues to apply buying pressure
Meanwhile, the story of Terra, this year's major buyer of the blockchain protocol, continues. Luna Foundation Guard (LFG), a non-profit organization affiliated with Terra, has added about 2,633 bitcoins ($105.3 million) to its holdings in the past 48 hours.
Terra's wallet is now the 18th largest bitcoin holder, according to monitoring resource BitInfoCharts, and holds more bitcoins than Are allocated to Bitcoin.