Contrary to expectations, institutional investors are dragging their feet in the accumulation of more Bitcoins. The interest in cryptocurrency is yet to spark a flare of mass purchases despite the low values. Bitcoin currently holds a position at $34k but institutions are restraining themselves from taking advantage of the current market trend.
The obvious reason for this is linked to Grayscale’s upcoming unlocking event. It is expected that the Bitcoin market will take on a new trend after the event which might see the selling pressure reduce drastically. The GBTC unlock would likely spark a selling pressure on the primary digital asset, this is what big-time investors are watching out for.
Hesitation isn’t only observed for institutional buyers but also individual mass buyers. Coinbase store for Bitcoin so far has only seen small values taken out, which indicates the overall uncertainty in the market. Coinbase recorded active buys earlier but the May capitulation took it sideways.
Who is Selling?
Glassnode on-chain weekly analysis confirms the unsteady trend of the current crypto market. However, the analysis indicates that a majority of long-term holders (LTHs) are still at some level of the property. An estimated 2.44 percent of the circulating supply accounts for some losses of LTHs.
In total, mass sell pressure was recorded for the short-term holders (STHs). These classes have witnessed varying losses as the market swings. Aside from them, the overall panic presiding over the blockchain atmosphere caused some LTHs to dispose of their holdings.
Currently, the Bitcoin market and altcoins are abroad at a height of uncertainty. The hashrates of both Bitcoin and Ethereum have declined rapidly as miners in China migrate to friendlier regions. Speculations presiding the crypto community suggest that it might take a while before the market returns to the greens again.