Bitcoin once again saw a 10% intraday drop, and investors felt abused again.
From the perspective of trading logic, there must be a quick sell order on the spot, except for the fixed-point blasting of the contract in a short period of time. So who is selling Bitcoin?
This is a more interesting question, because it represents the judgment of the seller on this time period.
The biggest selling news recently has been Ruffer, a British asset management company.
Golden Financial News, British asset management company Ruffer has sold all its bitcoin positions at the end of April, netting more than 1.1 billion U.S. dollars in 5 months. The company said that part of the reason for selling bitcoin positions is that the epidemic ban is about to end. , Young people don’t spend so much time trading Bitcoin. The company initially invested about $600 million in the purchase of Bitcoin in November last year. By the time the last batch of positions were sold in April, the total profit was just over $1.1 billion.
This is a relatively large sell-off that has been seen so far, and the time is up to the end of April.
The big drop occurred in May and beyond.
Recently, according to the data on the Bitcoin chain, the chain is “stopped”. According to data from CoinMarketCap, Bitcoin transaction fees are plummeting, with the average fee falling from $53 to $7, a decrease of 87%. In addition, as of June 6, the average daily number of active addresses on the Bitcoin network has dropped to 940,000, which is comparable to the level in May; the average daily number of new addresses has also dropped to 372,000, returning to the level of March.
However, the recent selling pressure may come from miners. According to the analysis data of CryptoQuant and Glassnode, the sales of Bitcoin miners have increased. For example, on June 3, the number of bitcoins flowing out of the Poolin mining pool wallet was the largest, 3271 (approximately US$119.9 million).
There are some other speculations. It is reported that at about 05:15 in the morning, Bitcoin suddenly plunged, falling more than $2,000 within a few minutes, breaking below $34,000 per coin, and falling more than 5% within a day. At the same time, Ethereum fell below US$2,600 per coin. Some people suspect that the U.S. Department of Justice dumped the Bitcoin they recently recovered, which caused the sudden drop of Bitcoin. Prior to this, the US Department of Justice also stated that it is raising the investigation of ransomware attacks to a priority similar to that of terrorism cases.
According to CryptoCompare’s May 2021 exchange review report, the number of open positions for BTC products decreased by 25.8% during the same period.
On June 8th, according to a report by the digital asset management company CoinShares, in the 7 days ending on June 4th, investors have redeemed a net $141 million from Bitcoin funds, which is the highest weekly total on record. . This amount represents approximately 8.3% of the net inflow recorded earlier this year. The total digital asset fund had a net outflow of US$94 million last week.
This is all caused by the previous crash and panic selling, but the essential reason reflected in the previous data is interesting. Just like the Bitcoin analyst PlanB stated on June 6th, the institution is deliberately lowering the price of Bitcoin. Accumulate cheap BTC. He stated that Bitcoin’s price movements in the past few months indicate that someone is trying to influence the market behind the scenes. “Looking at the daily chart of the past few months, you will see that after these panic selling took place, all bitcoins sold were bought within a week or two. For me, this is an institutional purchase. Logo.”
The Bitcoin Conference in Miami has just ended, and the belief in Bitcoin is still relatively clear. For example, Weice currently predicts at least $284.5 million in impairment losses on Bitcoin investment. But still considering buying more bitcoins.
On June 7, MicroStrategy announced that it would provide senior notes worth US$400 million to qualified institutional buyers in accordance with the provisions of the Securities Act and subject to market and other factors. The bond has a maturity of seven years and can only be repaid after three years. The net proceeds from the sale of the notes will be used to buy more bitcoins.
Subsequently, a person familiar with the matter revealed that Microstrategy is negotiating with investors a yield rate of 6.25% to 6.5% of junk bond issuance in order to fund the purchase of more bitcoins. This is the first time in history that a company has issued junk bonds to buy Bitcoin.
Since the announcement of Weice’s decision, market confidence has risen again. From the perspective of price analysis, there is still no effective break-through stage. The plunge in the middle of the bull market requires more patience to observe the market outlook.
Some analysts also said that in this year’s bull market, the trend of BTC was similar to the previous two rounds. It also rose all the way to a high of $64,850 and ushered in a major adjustment. , A large adjustment does not mean the end of the bull market. The previous two rounds of adjustment have not been small. The adjustment is a strong wash after the completion of the first stage of the bull market to prepare for the subsequent second stage. At present, if it has not fallen below effectively, don’t be blindly pessimistic. Follow up to see whether BTC can stop falling, stabilize and build a strong bottom in this area. Be patient and it will take time.
Author/ Translator: Jamie Kim
Bio: Jamie Kim is a technology journalist. Raised in Hong Kong and always vocal at heart. She aims to share her expertise with the readers at blockreview.net. Kim is a Bitcoin maximalist who believes with unwavering conviction that Bitcoin is the only cryptocurrency – in fact, currency – worth caring about.