Institutional Investors Have Sold $5.3 Billion in BTC Since LUNA Bust
Bitcoin Price
Modified Date:- Published Date:-Categories: Cryptocurrency
Institutional Investors Have Sold $5.3 Billion in BTC Since LUNA Bust
Institutional investors have sold at least 236,000 bitcoins, roughly worth more than US$5.3 billion, since the UST/LUNA collapse in early May.
It All Started With Terra
According to Vatel Lunde, an analyst at Arcane Research, institutions have sold 236,237 BTC since May 10, most of which were forced to sell due to the collapse of TerraForm Labs, which has spread infection throughout the crypto industry.
Forced Selling Infects Bitcoin Miners
At the same time, Lunde reports, Tesla sold 75 percent of its bitcoin holdings — about 29,060 BTC — at an average price of US$23,209. Furthermore, the extortion spread to bitcoin miners, who reportedly had to dump all of their BTC holdings generated in May, effectively doubling from the usual 20% to 40%.
Soon after the CPI (Consumer Price Index) slumped in the broader market in June, the massive liquidation of 3ACs further added fire to the already burning market. The notorious hedge fund now owes more than $3.5 billion to crypto lenders. Lunde ended his Twitter thread by saying that the past two months of surrenders, Chapter 11 bankruptcies and a July relief rally indicate that the transition is resolving. "Less uncertain times ahead," he concluded.
The price of bitcoin, which is still down more than 60% from its high earlier this month, has been hit hard by institutional investors and trading firms dumping the digital currency—perhaps for good.