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Bitcoin price drops by around 15% in one week as miners sell 5,000 BTC.
Trade volume for Bitcoin also witnessed a 62% drop compared to May’s weekly average.
As institutional investors ditch Bitcoin, they further focus on Ethereum.
In recent weeks, Bitcoin’s price has been continually consolidating below its 200-day moving averages, partly indicating a bear market. However, with a recent sell-off by miners, the bearish momentum has further intensified.
BTC is presently trading at around $33,000, with a roughly 50% decline compared to its ATH recorded in April 2021 at around $65,000. Commenced by Elon Musk, numerous factors have played a significant role in Bitcoin’s latest crash — notably the reiteration of the supposed crypto ban by China.
While Elon Musk and China’s aggressive behaviors towards Bitcoin have relatively cooled off, smaller factors continue to influence the leading cryptocurrency’s price. As of now, miners’ act of selling off 5,000 BTC has plunged Bitcoin’s price from a relative high of $39k down to around $32k.
Miners have sold over 5,000 BTC in the last week pic.twitter.com/5pEvLgIls2
— William Clemente III (@WClementeIII) June 7, 2021
And of course, when Bitcoin crashes, the entire crypto market drops with it. Ethereum, the second-largest cryptocurrency, also dropped by around 15% alongside Bitcoin. The coin was trading at around a relative high of $2,820. However, now it is priced at barely more than $2,500, according to data by Coinmarketcap.
Are Institutions Bearish on Bitcoin?
A June 7 report by CoinShares, a digital asset investment firm, indicates that Bitcoin outpourings from institutional BTC investment products resume surging. Last week alone, a record outpouring of $141 million from Bitcoin investment products occurred, which designates that institutional investors are steadily reducing their Bitcoin exposure.
Despite the ongoing “Bitcoin 2021 Conference in Miami,” which is aimed at promoting Bitcoin’s usage and adoption, the coin’s trading volume is sharply declining. In the first week of this month, trade volume for BTC products witnessed a 62% drop compared to the weekly average in May.
However, CoinShares portrays institutional investor’s current behavior toward Bitcoin as natural, and asserts that the present outpourings are even less than one-tenth of 2021’s inflows. The report states:
The outflows represent 8.3% of the net inflows seen this year and remain minimal on relative terms to the outflows seen in early 2018.
As institutional interest for Bitcoin continues to decline, Ethereum attracts more and more institutional investors. Last week alone, The second-largest cryptocurrency witnessed a whopping $33 million inflow, which somewhat explains where all the money from Bitcoin outflow is going.