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Blockchain data analysis platform CryptoQuant announced in a Quicktake blog post on July 11 that 100,000 Bitcoins were purchased in just one week. The analysis indicates that institutional Bitcoin investors are buying the dip, while Bitcoin price movement has surrounded the lowest levels in months. Institutional Bitcoin investors are not only buying but doing so with more conviction compared to times when BTC/USD was trading near all-time highs.
What Is Happening on the Bitcoin Front?
This conclusion was reached by CryptoQuant writer Caue Oliveira, who analyzed the change in wallet balances holding between 1,000 and 10,000 Bitcoins this week. These assets, reflecting the institutional side of the Bitcoin investor base, have rapidly increased their risks since the beginning of June. Since then, the BTC/USD pair has experienced a 23% drop. Even last week, when Bitcoin reached its lowest levels since the end of February, purchases continued, and the total increase exceeded 100,000 Bitcoins worth $5.7 billion. Oliveira shared the following statements on the matter:
“While many novice investors capitulated last week, particularly highlighting cryptocurrencies bought one to three months ago, institutional players have carried out the largest accumulation process since March.”
In terms of 30-day balance change, the increases match those seen in March when inflows into Bitcoin exchange-traded funds in the US were at their peak. However, this time, since ETF inflows are relatively low, Bitcoin’s target lies elsewhere.
Although daily inflows in March exceeded $1 billion, current daily figures are much lower. Data from sources, including UK-based investment firm Farside Investors, showed approximately $79 million for July 11, while $294 million was seen on July 8.
Details on the Matter
Groups of Bitcoin hodlers are facing a battle of wills as they hold significant amounts of funds in the red. Short-term holders, including new whales, faced unrealized losses of 17% during last week’s journey to $53,500.
According to calculations by blockchain data analysis firm Glassnode, the total cost basis of the short-term investor base, defined as entities holding a specific Bitcoin unit for up to 155 days, is above $64,000.
