Glassnode Data Exposed: 519 Bitcoin Plunge Retailers Surrender Chips While Institutions Suck Up

Institutional investors were not distracted by news from individual influential market participants and continued to suck in chips at low prices.

Glassnode Data Exposed: 519 Bitcoin Plunge Retailers Surrender Chips While Institutions Suck Up

In the past 10 days alone, the price of Bitcoin (BTC) has fallen continuously from $64,000, even with all the negative news flooding the market, after a short fall below the $30,000 mark on May 19, dropping more than 30% in 24 hours, due to negative reports surrounding the cryptocurrency market triggered by Elon Musk. Such a tragic drop has caused more than 500,000 people worldwide to explode their positions, and the total amount of exploding positions has quickly exceeded the $40 billion mark. The current drop is reminiscent of the entire crypto market crash in March 2020 after the emergence of the new crown pneumonia crisis.

BTC Price Plunge – Elon Musk Fuse

The headlines of the past few days have been dominated by negative tweets from Tesla CEO Elon Musk about Bitcoin. First, he announced that Tesla would no longer accept payments in the form of the largest cryptocurrency by market cap, and he even argued that Bitcoin was to blame for the waste of resources. He then subtly hinted in a tweet that Tesla might sell its bitcoin holdings. However, after being heavily criticized, he clarified that Tesla has not sold a single BTC.

Glassnode Data Exposed: 519 Bitcoin Plunge Retailers Surrender Chips While Institutions Suck Up

Musk has not been shy about responding to criticism and pushing back. Among them, podcaster Peter McCormick took a direct shot at Elon Musk, who McCormick accused of being a “spewer” and of trying to cause an uproar with his under-researched tweets. Musk responded: “This criticism will drive him to go “all in” on dogcoin in a unique way. Musk has developed a unique affinity for Memecoin in the past, and the price of dogcoin has skyrocketed through his hype.

Glassnode Data Exposed: 519 Bitcoin Plunge Retailers Surrender Chips While Institutions Suck Up

Since then, there has been a flurry of animal coins, such as SHIB (Shiba Inu coin), husky coin, gorilla coin, pig coin and other various animal cryptocurrencies, filled with speculators everywhere.

U.S. inflation surpassed expectations on the upside accelerated market expectations of the Fed’s policy turn, and rumors began to spread in the market that Biden might introduce a rate hike policy recently; as well as the Mutual Funds Association and other three departments released the news that financial payment institutions shall not carry out business related to virtual currencies and shall not provide other services related to virtual currencies directly or indirectly for customers.

Important indicators about the current BTC price

However, it took 1 day for the bitcoin price to return above $40,000, which is about 35% lower than the all-time high of around $64,000. Based on recent price performance alone, the current BTC price plunge is one of the deepest pullback moves in recent months. This plunge is reminiscent of the “Black Thursday” of 312 in 2020, when BTC prices even fell below $4,000. Analytics firm Glassnode has shown through data indicators that newcomers to the crypto market are currently selling their chips in a panic; in contrast, long-term Holders are unmoved and continue to hold.

Glassnode Data Exposed: 519 Bitcoin Plunge Retailers Surrender Chips While Institutions Suck Up

Glassnode data further shows the movements of retail and institutional investors. Analysts compared data from Binance, a very popular platform for retail traders, and Coinbase, an exchange typically used by institutions, to that of Coinbase. Glassnode detected an increase in BTC liquidity due to negative publicity about Elon Musk and Tesla. At the same time, the frequency of deposits and transfers out of Binance is also increasing, indicating that traders may be cashing out BTC or exchanging it for other cryptocurrencies. Interestingly, institutional investors are acting quite differently at the moment.

Institutional investors are moving in

While retail investors are selling off their holdings due to panic selling, institutional investors are entering the market. coinbase has seen higher inflows recently and many large investors are at a very opportune entry point at the moment, continuing to undercut their holdings and hoarding BTC. clearly, institutional investors are not distracted by news of individual influential market participants and continue to be bullish on the market’s huge potential in the long term.

Venture capitalist Anthony Pompliano even predicted that Musk and Tesla may also increase their BTC holdings in the near term, and that Tesla may rely on Bitcoin to some extent in the future, thus eliminating inflationary concerns. Thus, Pompliano clearly does not expect to sell bitcoin in a timely manner. This view is supported by experienced investor Paul Santos, who even believes that Elon Musk wants to “make money quietly” through his influence on the market.

Conclusion – Bitcoin plunges after institutions enter to pick up chips

After Elon Musk caused some of the cryptocurrency markets to plummet through his negative tweets, the market situation was somewhat confusing. Many retail investors reacted to the Tesla CEO’s news with panic and sold their BTC holdings, in a temporary market pullback reminiscent of the “Black Thursday” in December.

However, Glassnode’s experts are showing a series of anomalies in the market based on indicators. Large institutional investors are taking advantage of the current panic and hoarding bitcoin holdings, suggesting that most long-term institutions aren’t paying much attention to current events. Overall, the panic caused by individual tweets adequately reflects the risks in the cryptocurrency market.

However, retail investors should also note that for such a young crypto market, the actions of large investment institutions are very important and they choose to continue holding, or even increase their holdings. This is especially true for inexperienced retail investors who are selling their chips due to the impact of this negative news. However, many investors are choosing to continue to hold for the long term or will temporarily move to other cryptocurrencies.

Article source.

Bitcoin price collapses – Glassnode reveals interesting metrics

Posted by:CoinYuppie,Reprinted with attribution to:
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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