Bitcoin price seems to have gained immense strength in recent times and is also primed to rise beyond $25,000. However, according to a report, BTC prices were severely dropped as the Institutions and Whales constantly liquidated their holdings ever since the market collapsed in May 2022.
Therefore, this is expected to impact the upcoming price rally to a larger extent as they may utilise all their resources to keep the price consolidated.
The institutional investors & the whales are usually considered as the players who are bound to play in the long term and who remain uninfluenced by the short-term price actions. However, the recent liquidity crisis within the space may have alerted them as they are currently busy selling off their holdings.
According to the latest report, more than 236K BTC were sold since the market collapsed in May 2022. Moreover, according to an Arcane Research analyst, these sell-offs may have been forced upon them.
The analyst points out that these sell-offs were derived from the institutions which were shaken by the Do-Kwon episode.
“As LFG reached its initial $3 billion BTC reserves target, it took 5 days before UST’s peg was in shambles, and the 80K BTC reserve was deployed in a desperate attempt to save the peg. LUNA collapsed, leading to contagion and more sell-side pressure”,
In the meantime, miners in May alone sold more than 4000 BTC, some sold 100% of their production where a massive rise of 25% to 30% was recorded. Moreover, consecutive events concerning liquidity like Celsius, Voyager filing for bankruptcy, and the most recent Tesla dumping 75% of their BTC may drag price lower.
This fueled the miners to sell their reserves which spiked to 14,600 in June which is the highest of all. Currently, a huge drop in the no.of whales has been registered offlet which has reached a 2-year low at the moment.
However, the analyst concludes his series of tweets by stating,
“ I tend to lean in favour of forced selling and contagion-related uncertainty being done for now”,
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Source: https://coinpedia.org/price-analysis/institutions-heavily-dump-on-bitcoin-since-the-may-crash-may-keep-the-btc-price-lower-for-a-long-time/