At the beginning of the week, bitcoin was down to nearly $ 30,000 and, while retail traders were selling the first cryptocurrency, institutional investors ramped up their BTC purchases.
“Institutional investors buy these drawdowns, they take advantage of liquidation of positions of retail traders. You can see how bitcoins are quickly redeemed when prices go down, ”said Cambrian CEO Martin Green.
The information is also confirmed by the NYDIG company, which provides cryptocurrency financial services. NYDIG representatives said that the company’s customers used the depreciation for purchases:
“Our institutional clients saw the decline in bitcoin as a buying opportunity. During the fall in rates, 89% of orders were to buy. We see that our client base – large companies with long-term investment goals, such as insurance companies – use pullback times to increase their positions. “
At the same time, retail traders, according to the Coinbase exchange, were much more negative – only 38% of orders at that time were to buy. Analysts noted the likelihood that traders were simply fixing their positions and did not want to miss out on profits.
Interestingly, according to Glassnode, during the correction of the rate of the first cryptocurrency, the number of bitcoin “whales” reached a new historical record, and the number of wallets with a balance of more than 1,000 BTC reached 2,140.