• bitcoinBitcoin$69,901.00-2.13%
  • ethereumEthereum$3,583.44-2.36%
  • elrond-erd-2MultiversX$62.25-3.94%

Large Institutions Have Sold 236K BTC Since Terra’s Collapse in May

Tesla only slightly lost money during the Bitcoin dump, according to analysts at Arcane Research, as 75% of its holdings were sold at $32,209.

Arcane Research analyst Vetle Lunde disclosed how many institutional investors have sold their Bitcoin since Terra’s devastation began, depressing the entire cryptocurrency market, in a recent post on Twitter. According to his calculations, Tesla sold 29,060 BTC in May for an average price of $32,209.

According to Lunde, the significant institutional collapses of the previous two months began with Terra’s demise on May 10th, when Do Kown sold more than 80K BTC to protect the UST peg.

Since then, the epidemic has quickly spread throughout the sector and intensified the selling pressure, resulting in the sale of 236,237 BTC by significant institutions. Lunde pointed out that “other natural capitulation and hedging action that typically occurs during crypto downturn markets are not taken into consideration by the statistic.”

When Bitocin surged in Q1 2021, Tesla liquidated 10% of its previous holdings for “testing liquidity,” lowering the EV giant’s new break-even price of BTC from $34,841 to roughly $33,325. As a result, when carrying out the significant sales in May of this year, Tesla just slightly lost money.

The primary source of selling pressure in June was the CPI index increase, which caused the asset’s price to decline once more and “bankrupted some whales already under pressure after Luna’s fall.”

More specifically lenders like Celsius and Voyager, who were already in difficulties, were affected by 3AC’s implosion and both filed for bankruptcy the month after. According to leaked court documents, the Singapore-based hedge fund owed lenders 18,193 BTC and other digital assets worth 22,054 BTC.

The market selloffs were exacerbated by Canadian Purpose ETF redeeming 24,510 BTC between June 16 and June 20 in addition to the enormous liquidation of 3AC that caused the entire market to fall. As a result, on June 19th, the price of the leading cryptocurrency even fell below $17,700.

Lunde declared that the previous two months had been a phase of capitulation. Due to “underwater retail and institutions capitulating,” the scope of the market selloff might have been worse than what he had reported. He thought that for the time being, the relief rally was a sign that the contagion was ending as market apprehension decreased.

Previous articleNext article

Leave a Reply

Your email address will not be published. Required fields are marked *