Bitcoin has faced intense selling pressure recently, with its price dropping sharply below $54,000 in August. This notable downturn is primarily driven by significant selling activities from institutional investors, a trend that has left the cryptocurrency market in a state of flux.
Institutional Sell-Off Hits Bitcoin Hard
According to Wise Advice, a prominent crypto influencer, one of the main drivers behind Bitcoin’s recent price decline is the sell-off by institutional investors. Recent data reveals that significant Bitcoin transfers have been made to exchanges, a clear indication that major institutional players are either taking profits or repositioning their portfolios.
Leading the institutional sell-off is Fidelity, one of the prominent players who has sold off 16,000 BTC, which is valued at approximately $915 million. Followed by Grayscale who has, offloaded 15,000 BTC, amounting to roughly $858 million.
Later comes Ark Invest who has also contributed to the selling pressure, divesting 7,000 BTC worth about $400.4 million. Additionally, Ceffu has recently sold nearly 3,124 BTC, totaling around $178 million.
BlackRock Maintains Neutral Stance
Despite these significant sales, BlackRock has maintained a neutral stance, avoiding both buying and selling Bitcoin at this time. This position contrasts sharply with the active selling strategies of other major institutions.
Potential Buy Opportunity?
While the short-term outlook may appear bearish due to the current selling pressure, Wise Advice emphasizes that this is not a long-term downturn for Bitcoin. For long-term holders and investors looking for entry points, the current dip might present an opportunity to accumulate more Bitcoin at discounted prices.
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