Ahead of the major GBTC unlocking event, it seems institutions and retail alike have cold feet about $34,000 Bitcoin. Institutions are holding their breath when it comes to buying more Bitcoin (BTC), even at $34,000. According to data covering BTC balances on major exchange Coinbase, little mass buying has occurred in recent weeks.
Institutional demand "still low," says analyst
Despite BTC/USD trading at over 50% below its recent all-time highs, there is curiously little interest in buying up the supply for many investors. Whether retail or institutional, adding Bitcoin to portfolios appears to be simply not as attractive as before, even with a conspicuous “discount.”
“I know this is getting old, but Coinbase Bitcoin exchange balances still continue to go sideways,” researcher Jan Wuestenfeld commented on the data, tracked by on-chain analytics service Glassnode. “If we take that as a proxy for institutional demand is still low…”
Coinbase’s BTC balance saw consecutive steps down throughout 2021. The trend was consistent until mid May’s price capitulation event, when withdrawals conspicuously stopped. Since then, Coinbase has seen only small decreases in its Bitcoin reserves.
As Cointelegraph reported, July is set to see a shake-up in terms of institutional activity thanks to the Grayscale Bitcoin Trust (GBTC). Mid-month, a major unlocking event will give a large slice of the investor base a chance to sell their funds. Should they choose to do so, selling pressure is implied, and the potential for the Bitcoin price to slide further could be the reason why there is currently little interest in buying. The event is important — once over, selling pressure overall is expected to decrease significantly.
When it comes to selling behavior, meanwhile, it is conspicuously short-term holders (STRs) who are behind the routs which saw lows of $28,600. As Glassnode noted in the latest of its weekly reports, The Week On-chain, the mood very much appears to be one of panic selling — new investors are ridding themselves of BTC at a loss.
“A very large volume of coins that were underwater were spent this week,” Glassnode explained. “Note that almost all Long-Term Holders are in profit and their spending actually offset around $383M in net losses (total realised loss was $3.833B!). Currently only 2.44% of the circulating supply is held by LTHs at an unrealised loss.”
|#||Crypto||Prediction||Accuracy||CVIX||Price||24h||7d||Market Cap||7d price change|
|1||BTC||Bitcoin predictions||75.2%||52||$56 258.13||-1.35%||-3.39%||$1 062 685 871 647|
|2||ETH||Ethereum predictions||82.8%||32||$4 489.75||-2.02%||0.62%||$532 409 655 839|
|3||BNB||Binance Coin predictions||80%||34||$611.27||-1.84%||-6.27%||$101 960 292 775|
|4||USDT||Tether predictions||93.2%||1||$1.000332||-0.08%||-0.03%||$74 127 743 219|
|5||SOL||Solana predictions||70%||59||$228.23||0.71%||10.70%||$69 756 769 207|
|6||ADA||Cardano predictions||63.6%||75||$1.67||7.55%||1.04%||$55 541 807 746|
|7||XRP||XRP predictions||68%||69||$0.966682||-1.39%||-6.74%||$45 673 121 634|
|8||USDC||USD Coin predictions||95.6%||2||$1.000586||0.01%||0.05%||$39 076 707 256|
|9||DOT||Polkadot predictions||62%||77||$35.31||-2.83%||-9.08%||$34 868 955 794|
|10||DOGE||Dogecoin predictions||59.2%||80||$0.206922||-0.17%||-5.39%||$27 388 014 340|
|11||LUNA||Terra predictions||69.6%||68||$66.14||3.27%||50.17%||$25 662 261 357|
|12||AVAX||Avalanche predictions||61.2%||75||$106.91||-9.78%||-8.11%||$23 943 836 667|
|13||SHIB||SHIBA INU predictions||65.6%||78||$0.000042||-2.73%||1.55%||$22 792 818 490|
|14||CRO||Crypto.com Chain predictions||56%||89||$0.692197||-3.51%||-8.23%||$17 486 981 094|
|15||MATIC||Polygon predictions||68.4%||63||$2.09||-0.73%||11.57%||$14 682 483 901|
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