After last week’s euphoria that drove Bitcoin above $30,000, cryptocurrencies are experiencing a slight correction. The reference digital currency is trading at the highest level since mid-April, despite falling 1.5% today. The remaining currencies in the industry such as Cardano (-4.70%), solana (-1.68%), avalanche (-436%) or polygon (-4.66%) are also in the ‘red numbers’. Analysts believe it ETF creation requests by large companiesCompanies like BlackRock, Fidelity, Invesco or WisdomTree have fueled speculation about the interest of institutional investors. “When market depth is low, even a small increase in buy orders can significantly affect price volatility,” they explain from XTB.
Several market watchers have recently expressed their belief that: Bitcoin prices are mainly predicted by institutions and professionals. One of them, Vijay Ayyar, vice president of India’s largest cryptocurrency platform (CoinDCX), claimed that major investment funds are driving the price of digital currencies up. Jamie Sly, head of research at private ‘crypto’ platform CCData, confirmed this hypothesis by pointing to the high buying activity of wallets with a balance of more than 5 bitcoins in recent days: the rally was supported by the lower depth of the market. Notably, bitcoin’s daily trading volume has supported the dynamic price rally, falling more than 75% from a record high of $105 billion in 2021 to around $30,000 today.
Investors are surprised gold prices and bitcoin correlation break by index nasdaq and outperformed them at a time when both entities were under pressure. Adding to these data is that the illiquid supply of the main cryptocurrency has not stopped growing since November 2022, indicating an increasing role for long-term investors.
Big investor sales
It is also important to highlight the monthly change in the wallets of different investor groups. For example, organizations with fewer than 100 bitcoins have increased their reserves by 250% compared to the resource allocated to miners. Wallets holding 100 to 1,000 bitcoins, known as ‘sharks’, have added bitcoin equivalent to 36% of the total mined supply since last month. However, the data show that Investors with more than 1,000 Bitcoins in their wallets, called ‘whales’ in industry jargon, they sold about 70% worth of bitcoin During the last exchange, the total supply of miners is falling.
Does this mean that the main ‘swap’ platforms of cryptocurrencies have long forgotten their latest legal game? “SEC Lawsuits Against Binance and Coinbase they weren’t forgotten but they certainly disappeared into the background Craig Erlam, Oanda’s senior market analyst for the UK and EMEA, said: “And it’s been overtaken by a much more promising news feed.” As a possible alternative for investors, Erlam adds, “The big sell-off since mid-April was another reminder that this didn’t happen without major setbacks.”