Surge in Buying Pressure on Kraken and Coinbase Indicates Institutional Interest

Surge in Buying Pressure on Kraken and Coinbase Indicates Institutional Interest

Major US cryptocurrency exchanges Kraken and Coinbase have seen a significant increase in buying pressure, suggesting that larger investors are accumulating Bitcoin (BTC) amidst the ongoing market downturn. According to data from CCdata, Kraken and Coinbase experienced a 250% and 123% surge in their buy-sell ratio in September, respectively. This indicates that these exchanges have a higher proportion of buy orders compared to sell orders. In contrast, other major exchanges such as Binance and Bybit recorded a more modest increase in buying pressure, with their buy-sell ratios rising by 99% and 97%, respectively. CCdata analyst Hosam Mahmoud believes that the buying pressure on Kraken and Coinbase is likely being driven by larger investors. He notes that the average trade size per order on the BTC/USDT spot trading pair on the two exchanges this month was $2,148 and $1,321, respectively, which is significantly higher than that of Binance ($747) and Bybit ($898). This suggests that Kraken and Coinbase are brokering larger trades from institutions or long-term investors, while Binance and Bybit are seeing more frequent and relatively smaller trades. The increase in buying pressure on Kraken and Coinbase is a positive sign for the cryptocurrency market, as it indicates that institutional investors are still bullish on BTC despite the recent price declines. This could provide support for the market and help to stabilize prices in the coming months.