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Institutional investors aren't buying Bitcoin at 50% of all-time highs


30 Jun 2021   #Bitcoin

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.

1 week, $3.8 billion realized losses

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.”


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# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap Volume 24h
1 Bitcoin (BTC) BTC Bitcoin predictions 86.4% 24 $48 068.38 -0.43% 2.90% $904 552 592 109 $30 966 097 189
2 Ethereum (ETH) ETH Ethereum predictions 72% 52 $3 564.24 -1.78% 3.14% $418 997 277 161 $18 764 428 420
3 Cardano (ADA) ADA Cardano predictions 68% 64 $2.43 -1.86% -4.99% $77 762 171 546 $3 085 080 557
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5 Tether (USDT) USDT Tether predictions 96% 1 $1.000511 0.01% 0.05% $68 288 855 645 $74 100 163 467
6 XRP (XRP) XRP XRP predictions 70.4% 55 $1.096014 -2.04% -3.72% $51 098 642 600 $2 972 959 907
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10 USD Coin (USDC) USDC USD Coin predictions 92% 1 $1.000184 0.01% 0.02% $29 237 308 733 $2 846 778 419
11 UniSwap (UNI) UNI UniSwap predictions 69.6% 56 $25.95 -4.24% 8.79% $15 869 589 993 $590 249 626
12 Terra (LUNA) LUNA Terra predictions 66.4% 67 $36.55 0.26% 12.35% $14 691 406 586 $1 543 465 878
13 Avalanche (AVAX) AVAX Avalanche predictions 67.6% 69 $64.75 9.96% 46.82% $14 264 323 937 $2 618 327 427
14 Chainlink (LINK) LINK Chainlink predictions 73.6% 56 $30.07 -4.45% 3.96% $13 594 035 693 $1 522 191 986
15 Binance USD (BUSD) BUSD Binance USD predictions 90.8% 1 $1.000216 0.01% 0.02% $12 747 588 570 $6 369 639 162

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