The drop in cryptocurrency prices has affected all investors as summer approaches. Institutions have fueled liquidation cascades – they have sold more than 230,000 bitcoins in the past two months, according to a new report. We are looking into the trend, which may be in the process of being resolved.
Institutions massively sold their bitcoins
Last week, we were surprised to learn that Tesla had sold 75% of its bitcoins (BTC) during the second quarter. And Elon Musk’s company isn’t the only one getting rid of its cryptocurrencies: institutions they had a real clearance sale for two monthsaccording to data presented by Arcane Research.
Number of bitcoins sold by major institutions since May 2022
As the report recalls, it all started with the Earth (LUNA) affair. Luna Foundation Guard’s BTC reserves were reduced to zero on May 9, resulting in a series of consequences within the ecosystem.
The first to suffer from the sales pressure were the miners. They got rid of 4,456 bitcoins in May. Then followed Tesla, as Bitcoin approached $ 30,000. In total, the sale it would have reached 935 million dollarsaccording to estimates.
The FUD then spread across the crypto ecosystem and the big players started to struggle, which fueled the trend. Celsius suspended withdrawals, Three Arrows Capital plummeted, and Bitcoin’s price continued to plummet.
Result: the miners sold an even larger sum in June, which amounted to 14,600 bitcoins :
Growth in sales of bitcoin miners
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Are we out of the capitulation phase?
The Arcane Research report notes that all of these data are only probable just the tip of the iceberg :
“Most of the sales of the aforementioned 236,237 bitcoins were forced, and it was arguably worse than mentioned in this study, with hidden capitulations from private and institutional actors.“
So are we out of the worst? This is the interpretation of these minutes: bankruptcy declarations have been registered, and the last few weeks have finally seen some green fences for cryptocurrencies :
“The contagion is resolving, we are moving towards less uncertain times.“
As proof of this renewed optimism: BTC came up against $ 25,000 last week, when he had so far struggled to stay above $ 20,000:
The price of bitcoin wakes up last week
We are therefore feeling a little more optimistic in recent weeks, following the uncertainty and massive capitulations. The price of BTC still has a long way to go to reach its all-time high again, at $ 69,000.
👉 To go further – Bitcoin (BTC) on-chain analysis – A weak recovery?
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Source: Arcana Research – Price Chart: TradingView
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