- An investigation carried out by Arcane Research showed that a good part of institutions sold 1% of the total supply of Bitcoin during the last two months, that is, 236,237 BTC.
- In May, miners sold 4,556 BTC and in June they dumped another 14,600, more than triple their production.
- Since its November 2021 ATH when Bitcoin hit $68,000, digital gold is down more than 70%.
It seems that the days of seeing green candles in the crypto market are behind us as it has been red for months and many investors are concerned. Especially those who bought during the rise of Bitcoin.
According to an analysis of Arcane Research , a good number of institutions lost patience and for the last two months they sold 1% of the total supply of Bitcoin.
Fall of the crypto ecosystem
Many of them had assured that they found a refuge in cryptocurrencies and that they would not have problems holding it for many years, however Since its November 2021 ATH, which was $68,000, digital gold is down more than 70%.
The debacle of the crypto ecosystem undoubtedly began with the collapse of Terra, when the Terra (LUNA) and TerraUSD (UST) tokens lost all their value and in a matter of days erased billions of dollars. Many investors were inside this protocol (especially Anchor) and tried to get out of it as fast as they could.
Terra, to save their blockchain, sold the BTC they had in reserve and so did miners of all kinds. In this sense, companies were no exception: in times of crisis they get rid of the riskiest investments and tie themselves to cash.
Companies protect themselves from the fall
Tesla, company of Elon Musk, reported that there was vsold nearly 75% of its holdings and that pocketed $1,000 million dollars. The trade delivered 29,060 BTC back into the market, creating massive selling pressure. This, without a precise date, happened during the last few months.
However, the car manufacturing company was only a small part of those who lobbied (barely 12%). During the last two months, institutional investors sold 246,237 BTC, this represents 1% of the circulating Bitcoin in the world.
The trend is expected to change in the short term and impatience is likely to make selling companies pay. Will they buy back when digital gold when the next bull run starts?
More pressure from miners
As mentioned, it was not just companies that generated bearish pressure within an already battered market. Only in May, as revealed Bitcoinist, the miners sold 4,556 BTC. This was the first time that sales were greater than production. In June, the situation worsened: they got rid of 14,600, more than triple their production.
At the time of writing this article, Bitcoin had grown just over 4% in the last 24 hours and less than 3% in the week. During the last 30 days it did not exceed $24,200 or fall below $18,729; the bear market floor is located at 17,700.
The crypto ecosystem continues to grow despite falling prices. It is important to analyze the risks and rewards. Many companies did not understand this and sold at a loss.
You might be interested in: