Institutions held their breath while buying more bitcoins (Bitcoin), even if it’s $34,000.
According to the BTC balance data held by the major exchange Coinbase, there are not many large-scale purchases occur In recent weeks.
Analysts say that institutional demand is “still low”
Although the trading price of BTC/USD is more than 50% lower than its recent historical high, it is strange that many investors have little interest in buying supply.
Whether it’s retail or institutional, adding Bitcoin to a portfolio seems to be less attractive than before, even with obvious “discounts.”
“I know this is obsolete, but Coinbase Bitcoin transaction balances continue to be sideways,” researcher Jan Wuestenfeld commented on the data tracked by the on-chain analytics service Glassnode.
“If we take it as a representative of institutional demand, it is still very low…”
Coinbase’s BTC balance continued to decline throughout 2021. This trend continued until the price surrender event in mid-May, when withdrawals clearly stopped. Since then, Coinbase’s Bitcoin reserves have only declined slightly.
As reported by CointelegraphDue to Grayscale Bitcoin Trust, July will see a reorganization in terms of institutional activities.
In mid-July, a major unlock event will give most investors a chance to sell their funds. If they choose to do so, it means selling pressure, and the possibility of a further decline in the price of Bitcoin may be the reason why there is little interest in buying right now.
This event is very important-once it is over, the overall selling pressure is expected to be significantly reduced.
In one week, realized a loss of 3.8 billion U.S. dollars
At the same time, in terms of selling behavior, it is clear that short-term holders (STR) are behind the drop to the low of $28,600.
As a glass node famous In its latest weekly report “The Week On-chain”, this sentiment appears to be a panic selling-new investors are getting rid of BTC at a loss.
“A lot of underwater coins were spent this week,” Glassnode explained.
“Please note that almost all long-term holders have made a profit, and their expenditure actually offset a net loss of approximately US$383 million (the total realized loss is US$3.833!). Currently only 2.44% of the circulating supply is held by LTH Yes, unrealized losses.”