Metric Shows Elevated Institutional Buying Pressure in US as Crypto FGI Hits 3-Month High ⋆ ZyCrypto




After last year’s rallies, the crypto community witnessed a persistent bear market that worsened macroeconomic conditions. Despite growing institutional adoption, crypto markets have not favored institutional investors as sentiment remains bleak. Recent data, however, has indicated mounting buying pressure on US institutional investors, with the FGI crypto hitting a high seen just three months ago.

CPI shows substantial accumulation of whales

According to a chart from crypto analytics platform CryptoQuant, the Coinbase Premium Index looks good compared to values ​​seen in recent days. The Coinbase Premium Index has a current value of 0.045 at the time of writing, indicating intense buying pressure on US institutional investors.

The chart reveals that the Bitcoin CPI has risen steadily since its massive crash to -0.12 on July 12, as BTC fell to a low of $19,308. Despite its steady increase, it was not until July 20 that the metric reached a positive value. A new push immediately followed the breakout.

An upward trend in the CPI, as seen in the past week, indicates that whales are accumulating more tokens to strengthen their positions by buying at a higher premium.

The Coinbase Premium Index helps analysts determine the movements of whales. Indeed, most institutional investors and whales in the United States turn to Coinbase Pro for cryptocurrency purchases. Due to the concentration of crypto institutional investors and whales in the United States, the CPI has been an essential metric for tracking whale movements.



Crypto FGI hit 42 for the first time since April

Meanwhile, the Crypto Fear and Greed Index hit a high of 42 on July 30 for the first time in 3 months, indicating increasingly favorable sentiments in the market. Last month, the FGI crypto looked as positive in April. The FGI hit a high of 53 on April 5 as markets still looked good, with BTC consolidating around the $45,000 area.

The FGI had since plunged further, and on July 18, when BTC fell below $18,000, the index sank as low as 6 – one of its lowest points in more than three years. Nonetheless, amid the comeback, markets held up, sentiment in the space looks positive, and the FGI rose steadily.

The current value of 42 was reached despite the Fed’s recent interest rate hike to fight inflation. The markets seem not to care about politics.


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