Institutional Demand for Bitcoins Vanishes Amid Falling Below $31K
The bears have been trying to push Bitcoin below $31,000 for weeks, and on Monday morning they finally succeeded. Not surprisingly, against this background, interest from institutional investors was rapidly declining.
As institutional investors have retreated in anticipation of market improvements and bears continue to aggressively advance, there is little hope of a BTC reversal and appreciation in the near future. Especially when Bitcoin dropped below $30,000 on Tuesday morning.
According to data from CryptoQuant and TradingView, a wave of selling in the middle of the day on July 19 pushed the price of BTC to a low of $30,400. This happened before the bulls could step up and raise the rate to $30,850.
The Glassnode report, which compiled in terms of the distribution of UTXO (a metric that defines intra-chain volume profiles across different price groups) realized prices, shows that 10.5% of the BTC circulating supply was in the range of $31,000 to $34,300.
Unfortunately, since the Bitcoin exchange rate fell below $30,000 on Tuesday, July 20, further significant support levels are $26,500, $23,300 and $18,800.
Since May, a market-wide pull-back has led to a decline in interest from institutional investors. They may have focused on risk management, for now, waiting for the market to stabilize.
The decline in interest is indicated by the market price of GBTC, which continues to trade at a discount of -11.0% to -15.3%, and a significantly slower net inflow in the target ETF. According to Glassnode, the net outflow from ETFs was -90.76 BTC.
Domestic deposits of Bitcoin on exchanges, on the other hand, received a significant influx – more than 28,700 BTC. This is the largest inflow since July 16.
Also, according to Glassnode, a net inflow of 1,780 BTC to OTC trading platforms over the past two weeks may indicate a disruption in the structural trend of outflows since November 2020.
During periods of consolidation and correction, inflows often indicate negative trends, as this could lead to a short-term fall in prices.