Bitcoin News Today: Institutional Buying on Coinbase Spikes to 75% Amid Fed Rate Cut Speculation

Bitcoin’s recent price action has drawn attention from market analysts, especially following a notable surge in institutional activity on Coinbase, the largest U.S. cryptocurrency exchange. Charles Edwards, founder of Capriole Investments, highlighted that institutional Bitcoin purchases accounted for 75% of Coinbase’s volume, a level he has historically associated with a bullish trend in BTC prices within a week [1]. According to Edwards, any reading above 75% in institutional buying activity has consistently led to higher prices for Bitcoin in the past [1].

This increase in outflows came amid a broader macroeconomic backdrop where U.S. July CPI data came in lower than expected, stoking speculation about an imminent Federal Reserve rate cut. Edwards attributed the heightened corporate demand for Bitcoin to the improving inflation outlook. He argued that lower interest rates typically favor risk assets, and Bitcoin has historically responded more aggressively to such macroeconomic signals [1].

Bitcoin reached an all-time high of $123,000 on July 14 but has since consolidated below $120,000 for about a month, repeatedly failing to hold above this key level [1]. Despite this consolidation, the recent Coinbase volume pattern, combined with the broader macroeconomic context, suggests that the conditions are favorable for a potential breakout. Edwards noted that the likelihood of a Fed rate cut in September is now at 99.8%, according to the CME Group’s FedWatchTool, further supporting the case for a more accommodative monetary environment [1].

He emphasized that the historical pattern of Bitcoin responding to institutional buying pressure, particularly on a leading exchange like Coinbase, makes the current activity an “exciting signal” for Bitcoin holders [1]. However, Edwards was clear in stating that his observations should not be interpreted as investment advice [1].

Source: [1] Analyst: "Exciting Signal for Bitcoin (BTC) Came from Coinbase! It Always Resulted in an Uptrend!" (https://en.bitcoinsistemi.com/analyst-exciting-signal-for-bitcoin-btc-came-from-coinbase-it-always-resulted-in-an-uptrend/)