- During the last 7 days, the crypto market has presented strong losses, leading it to lose $1.4 billion dollars in its market valuation.
- In the last 7 days, Bitcoin has lost 25% of its value, falling even below $30k.
- Investors made up of crypto whales and institutions have taken advantage of the drop in BTC, ETH and other cryptocurrency-based products to buy more assets.
Without a doubt, Bitcoin is the cryptocurrency that gives the most talk in the crypto ecosystem, especially when it is showing a drop in its value.
Its most recent fall that has led it to lose almost 25% of its value in the last 7 days, falling even below $30 thousand dollars, It has generated specialists and enthusiasts to start a sea of speculation about what is happening and where the crypto asset will go now.
The recent slump in the crypto market has caused $1.4 trillion to disappear from the market capitalization. This situation led blockchain analysts from the firms glass node Y Coin Shares and they will begin to analyze the behavior of investors.
Institutions and whales take advantage of market decline
According to the medium Decryptanalysts found that The investors they paid attention to the popular saying that says that “a troubled river, profit of fishermen”, and they took advantage of the drop in BTC, ETH and other cryptocurrency-based products to buy more assets.
According to CoinShares last week crypto products saw net inflows totaling $40 million while Bitcoin saw net inflows of $45 million.
But, who moved this capital? According to the analyzes were the large cryptocurrency investors known as Whales, or whales, and the institutions since these two groups have enough financial protection to take advantage of the recent market downturn and purchase exchange-traded Bitcoin products at low fees.
As noted in the CoinShares report, which tracked crypto exchange-traded products such as Grayscale Bitcoin Trust (GBTC) (which is passively invested in Bitcoin and reflects its price movement), on Monday, GBTC shares were down 19 percent in value over the past 5 days, compared to Bitcoin’s 23 percent price decline.
“It is very curious that we have not detected the same increase in trading activity in investment products that is typically seen historically during periods of extreme price weakness.“, pointed out in the aforementioned report, the current head of investigation of CoinShares, james butterfill.
Likewise, he pointed out that it is too early to indicate whether this event can be marked as the end of the four-week streak of negative sentiment, existing in the digital market.
Fall is not as serious as on previous occasions
In this regard, it should be noted that, although there is a record of a decrease in the aforementioned values, causing Both Bitcoin and Ethereum stumbled 50 percent below reported all-time highs last November, yet the current numbers are not as negative as previous bear markets.
Notably, During all this hustle and bustle, there has been a lot of price gouging. In this regard, investors have used futures, in order to bet if an asset will increase or decrease in price.
The result is an unprecedented amount of four million dollars, a figure that circulated towards short Bitcoin contracts, with the main bet being that the price would continue to fall. Such bets led total assets in Bitcoin shorts to an all-time high of $45 million.
However, despite the great figure obtained, the assets that are in long Bitcoin positions still fully outperform the short products.
It should be noted that the $45 million reported in short products basically equals 0.15 percent of the $30 billion in assets managed in long Bitcoin products, as reported by CoinShares.
Therefore, we will have to see how the market continues to behave and especially the prices to discover if they stand out or fall even more.
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