The fall in cryptocurrency prices has affected all investors as summer approaches. The institutions have fueled the liquidation cascades: they have sold more than 230,000 bitcoins in the past two months, according to a new report. We are looking at the trend, which could be in the process of being resolved.
Institutions massively sold their bitcoins
Last week, we learned with surprise that Tesla had sold 75% of its bitcoins (BTC) during the second quarter. And Elon Musk’s company isn’t the only one to get rid of its cryptocurrencies: institutions have 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 Terra (LUNA) affair. The 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 be affected by the selling pressure were the miners. These got rid of 4,456 bitcoins in the month of May. Then Tesla followed, when Bitcoin approached $30,000. In total, the sale would have reached 935 million dollarsaccording to estimates.
FUD then spread through the crypto ecosystem, and big players started to struggle, which fueled the trend. Celsius thus suspended withdrawals, Three Arrows Capital collapsed, and the price of Bitcoin continued to plunge.
Result: miners sold an even larger sum in June, which amounted to 14,600 bitcoins :
Bitcoin miner sales growth
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Are we out of the capitulation phase?
The Arcane Research report notes that all of this data is likely only only the tip of the iceberg :
“Most of the sales of the 236,237 bitcoins mentioned above were forced, and it was probably worse than what this study mentions, with hidden capitulations from private and institutional actors.»
So have we come out of the worst? This is the interpretation made by this report: the declarations of bankruptcy have been recorded, and the last few weeks have finally seen some fences in the green for cryptocurrencies :
“The contagion is being resolved, we are moving towards less uncertain times.»
Proof of this renewed optimism: BTC came up against $25,000 last week, when it had so far struggled to stay above $20,000:
Bitcoin price wakes up last week
We therefore feel a little more optimistic wind blowing in recent weeks, after the uncertainty and the massive capitulations. The price of BTC still has a long way to go to again reach its all-time high, at $69,000.
👉 To go further – On-chain analysis of Bitcoin (BTC) – A weak recovery?
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Source: Arcane Research – Price chart: TradingView
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