Institutional investors sold over 236,000 BTC worth more than $5.5 billion over the past two months.
Since May 10, 2022, major BTC holders have sold more than 236,200 BTC for about $5.452 billion. Moreover, some of these sales were forced. Vetle Lunde, Arcane Research analyst, shared these observations.
According to Lunde, the trigger for the massive sell-off was the Luna Foundation Guard’s (LFG) attempt to hold the UST exchange rate, and in the process, the organization dumped 80,081 BTC into the market. It failed to prevent Terra’s collapse, but it did put significant pressure on the BTC exchange rate and provoked further sell-offs. Lunde estimated that from May to June, miners sold 19,056 BTC, some of which were taken from reserves.
At the same time, Tesla began selling off its BTC, which became known just the other day. According to analyst information, the company sold 29,060 BTC. On top of that, the forced asset sales of Three Arrows Capital (3AC) and the massive redemption of Canadian Purpose Bitcoin (ETF) amounted to 18,193 BTC and 24,510 BTC, respectively.
These and other sell-offs put pressure on Bitcoin, triggering it to fall below the “equilibrium price” level. To make matters worse, the situation has generally undermined user confidence in the first cryptocurrency, so the short-term outlook for the market turns out to be bleak.
