Following last year’s rallies, the crypto community witnessed a persistent bear market that aggravated macroeconomic conditions. Despite growing institutional adoption, the crypto markets have not favoured institutional investors, with sentiments remaining bleak. Recent data, however, has indicated an increasingly high buying pressure on US institutional investors, with the crypto FGI reaching a high seen only three months ago.
The CPI shows substantial whale accumulation
According to a chart by crypto analytics platform CryptoQuant, the Coinbase Premium Index is looking good from values seen in the past 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 been increasing steadily since its massive crash to -0.12 on July 12, as BTC dipped to a low of $19,308. Despite its steady increase, it was not until July 20 that the metric reached a positive value. A further surge readily followed the breakout.
An increasing trend in the CPI, as seen in the past week, indicates that whales are accumulating more tokens to strengthen their positions by purchasing at a higher premium.
The Coinbase Premium Index helps analysts determine whale movements. This is because most institutional investors and whales in the US look to Coinbase Pro for cryptocurrency purchases. Due to the concentration of crypto institutional investors and whales in the US, the CPI has been an essential metric for tracking whale movements.
The Crypto FGI has reached 42 for the first time since April
Meanwhile, the Crypto Fear and Greed Index reached a high of 42 on July 30 for the first time in 3 months, indicating growing favourable market sentiments. The last month the crypto FGI looked this positive was in April. The FGI reached a high of 53 on April 5 when the markets were still looking good, with BTC consolidating around the $45k zone.
The FGI had since then been plunging further, and, on July 18, when BTC dropped below $18k, the index went as low as 6 – one of its lowest points in over three years. Nonetheless, amidst the comeback, the markets have been putting up, sentiments in the space are looking positive, and the FGI has been increasing steadily.
The current value of 42 was reached despite the recent interest rate hike by the Fed to fight inflation. The markets appear to not care about the policy.