Bitcoin Falls Again Who’s Selling Bitcoin?

With a 10% intra-day drop, investors’ feelings are being abused once again.

Bitcoin Falls Again Who's Selling Bitcoin?

Bitcoin saw another 10% intra-day drop today, and once again investors’ feelings were abused.

Looking at the trading logic, the 15-minute line, the short time plunge, there must be a quick sell order on the spot in addition to the fixed point blast on the contract. So who is selling bitcoin?

This is a rather interesting question, as it represents the sellers’ judgment of the time frame.

The biggest sell-off news we’ve gotten recently is from Ruffer, a UK asset manager.

The British asset manager Ruffer has sold its entire bitcoin position at the end of April, netting more than $1.1 billion in five months, the firm said, adding that part of the reason for selling the bitcoin position is that young people won’t spend as much time trading bitcoin now that the epidemic sequester is coming to an end. The firm initially invested about $600 million to buy bitcoin last November. By the time it sold the last of its positions in April, total profits were slightly more than $1.1 billion.

This is one of the bigger sell-offs seen so far and was timed to the end of April.

The big drop occurred in May and beyond.

Recently, the chain has been “quiet” as seen through Bitcoin on-chain data, which shows that Bitcoin transaction fees are plummeting, with the average fee dropping 87% from $53 to $7, according to CoinMarketCap. Also, as of June 6, the average number of daily active addresses on the Bitcoin network had fallen to 940,000, the same level as in May, and the average number of daily new addresses had fallen to 372,000, back to March levels.

However, recent selling pressure may be coming from miners, as Bitcoin miners have seen an increase in sales, according to analysis from CryptoQuant and Glassnode. On June 3, for example, Poolin (Coinprint) had the largest outflow of bitcoin from its mining wallets at 3,271 (about $119.9 million).

And there is some other speculation about today’s drop. Sources say that at around 05:15 this morning, Bitcoin took a sudden dive, falling more than $2,000 in a few minutes, below $34,000 per coin, and down more than 5% during the day. Meanwhile, ethereum fell below $2,600 per piece. Some suspect that the U.S. Department of Justice dumped their recently recovered bitcoin, which caused the sudden drop. This comes after the U.S. Department of Justice also said that it is elevating the investigation regarding ransomware attacks to a priority similar to terrorism cases.

According to CryptoCompare’s May 2021 Exchange Review report, open interest in BTC products decreased by 25.8% over the same period.

June 8 (Bloomberg) — Investors redeemed a net $141 million from bitcoin funds in the seven days ended June 4, the highest weekly total on record, according to a report from digital asset manager CoinShares. The amount represents about 8.3% of the net inflows recorded earlier this year. And in total, digital asset funds saw net outflows totaling $94 million last week.

This is all a result of the previous selloff and panic selling, but the essential reason why the previous data reflects this is interesting, just as bitcoin analyst PlanB said on June 6 that institutions are deliberately undercutting the price of bitcoin in order to accumulate cheap BTC. he said that bitcoin’s price action over the past few months suggests that someone is trying to influence the market behind the scenes. “Looking at the daily charts over the last few months, you see that all the bitcoin that was sold was bought within a week or two after these panic sell-offs occurred. To me, that’s a sign of institutional buying.”

The Bitcoin conference in Miami just ended, and beliefs about Bitcoin are still relatively clear. Microzer, for example, is currently forecasting an impairment loss of at least $284.5 million on its bitcoin investments. And yet, it is still considering buying more bitcoin.

On June 7, MicroStrategy announced that it will offer $400 million worth of senior notes to qualified institutional buyers, as required by the Securities Act and subject to market and other factors. The notes have a term of seven years and are repayable only after three years. The net proceeds from the sale of the notes will be used to purchase more bitcoin.

Then, another person familiar with the matter revealed that Microstrategy is negotiating with investors for a yield of 6.25% to 6.5% on the junk bond issue to fund its purchase of more bitcoin. This is the first time ever that a company has issued junk bonds for bitcoin purchases.

Confidence at the market level has moved higher again since the release of MicroCurrencies’ decision. And in terms of price analysis, it still hasn’t gotten to the stage of effectively breaking down. The mid-bull market selloff requires more patience to observe the aftermath.

Yesterday, according to Golden K God analysis, this year’s bull market, BTC trend and the previous two rounds are similar, also all the way up to $64850 high ushered in a big adjustment, the lowest drop to $30000 a band, but also 1.618 trend support area, touching the rapid recovery, did not effectively break down, adjustment strength does not mean the end of the bull market, the previous two rounds of adjustment strength are not small, adjustment is the first phase of the bull market completed After the first stage of the bull market is completed after the strong wash, for the follow-up of the second stage to prepare. At present, in the case of not effectively broken, do not blindly pessimistic, follow up to observe whether BTC can be in this area to stop stabilizing and bottoming out stronger, more patience, need time.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/bitcoin-falls-again-whos-selling-bitcoin/
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