According to BlockBeats, on August 13, Charles Edwards, founder of the crypto quantitative digital asset fund Capriole Investments, stated that there has been a massive outflow of institutional funds from Coinbase. As inflation in the U.S. cools and the market expects a rate cut next month, Bitcoin has once again become a target for institutional investors. Capriole data shows that 75% of Coinbase's trading volume on Tuesday came from institutional investors. 'Any reading above 75% will see prices higher a week later.'
Capriole calculated that this week the 'excess demand' from institutions was about 600% of daily output, while the current daily Bitcoin production is about 450 coins. Just on Tuesday, the Bitcoin corporate treasury added 810 BTC; Monday's increase was even larger, close to 3,000 BTC. These actions were accompanied by July's U.S. Consumer Price Index (CPI) data coming in below expectations, as well as Bitcoin's price making a push towards historical highs.
When asked why institutional investors are 'buying crazily', Edwards specifically pointed to expectations for interest rates: 'Because yesterday's inflation data was in line with expectations, this means that the Federal Reserve will almost certainly cut rates next month, and may cut rates three times this year. Given the poor employment background, the market is even assessing the possibility of a significant 0.5% rate cut. Lower interest rates = rising risk assets, and Bitcoin has historically been the fastest horse.'
