Bitcoin Institutional Volume on Coinbase Hits 75%, Signaling Bullish Price Move

Bitcoin institutional volume hits 75% on Coinbase in new BTC price signal

Bitcoin (BTC) may see fresh price gains within a week as institutional demand surges on Coinbase. New analysis shows that large-scale buyers are taking positions amid an improving US economic outlook.

On Wednesday, Charles Edwards, founder of Capriole Investments, shared data highlighting significant outflows from Coinbase. According to him, 75% of Coinbase’s trading volume came from institutional players on Tuesday.

“All readings above 75% have seen higher prices one week later,” Edwards noted in his X post.

Analysis: Institutions could trigger fresh BTC price gains

Institutional appetite for Bitcoin is rising as US inflation cools and markets prepare for lower interest rates. Capriole data suggests institutional “excess demand” this week is around 600% of the daily mined supply of roughly 450 BTC.

Corporate treasuries alone bought 810 BTC on Tuesday, while Monday’s purchases neared 3,000 BTC. This demand far outpaces Bitcoin’s daily issuance, creating a potential supply squeeze.

Bitcoin benefits from Fed rate-cut optimism

The surge in institutional activity coincided with lower-than-expected US Consumer Price Index (CPI) data for July. BTC’s price moved closer to its all-time high as markets bet on interest rate cuts.

“Because yesterday inflation was as expected, it’s a certainty the Fed will cut rates next month — and probably three times this year,” Edwards explained. “Rates down = risk assets up, and Bitcoin is the fastest horse historically.”

CME Group’s FedWatch Tool shows a 0.25% cut in September is highly likely, with some traders even considering a 0.5% move due to weak job market data.

QCP Capital noted in its Asia Color market update that market-implied rate cuts for 2025 remain at around 60bps, with a 3% floor expected in 2026. The firm is watching next week’s Jackson Hole symposium for clues about the Fed’s direction.