Bitcoin Selling Pressure Beating Bankruptcies
- Arcane Research analyst Vetle Lunde showed how many institutional buyers of Bitcoin had liquidated since Terra’s devastation began.
- Since then, the epidemic has spread rapidly throughout the sector, intensifying sales pressure.
- The primary source of selling pressure in June was the increase in the CPI index.
Vetle Lunde’s report on the sale of bitcoin
In a recent post on Twitter, Arcane Research analyst Vetle Lunde showed how many institutional buyers of Bitcoin had liquidated since Terra’s devastation began, sinking the entire cryptocurrency market. He calculated that Tesla sold 29,060 BTC in May at an average price of $32,209. According to Lunde, the significant institutional collapses of the previous two months began with Terra’s demise on May 10, when Do Kown sold more than 80K BTC to protect the UST pin.
Since then, the epidemic has quickly spread throughout the sector and intensified the selling pressure, resulting in the sale of 236,237 BTC by significant institutions. Lunde pointed out that the statistics do not take into account other natural capitulations and hedging actions that typically occur during crypto downturns. Listed miners were forced to liquidate 4,456 BTC of their Bitcoin holdings in the month due to pressure from the weakened markets. By Lunde’s estimation, Tesla liquidated 75% of its Bitcoin holdings in the meantime, amounting to 29,060 BTC. Tesla still has 9,686 Bitcoins, down from 43,053 on February 1, 2021.
Voyager and Celsius declare bankruptcy
As Bitcoin rallied in Q1 2021, Tesla liquidated 10% of its previous holdings to test liquidity, lowering the EV giant’s new BTC break-even price from $34,841 to around $33,325. As a result, when Tesla made the significant sales in May of this year, Tesla only lost a little money. The primary source of selling pressure in June was the increase in the CPI index, which caused the asset’s price to fall again and meant that some whales were already under pressure after Luna’s fall into bankruptcy. Lenders such as Celsius and Voyager, already in trouble, were affected by 3AC’s implosion, and both filed for bankruptcy the following month. According to leaked court records, the Singapore-based insurance firm owes lenders 18,193 BTC and other digital assets worth 22,054 BTC.
The market sell-off was fueled by the Canadian Purpose ETF redeeming 24,510 BTC between June 16 and June 20, in addition to the massive liquidation of 3AC that sent the entire market crashing. As a result, on June 19, the price of the main cryptocurrency even fell below $17,700. Lunde declared that the previous two months had been a time of surrender. Due to underwater stores and institutions capitulating, the extent of the market selloff could have been worse than what he had reported. For now, he believed that the relief rally was a sign that the contagion was ending as market anxiety subsided.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while graduating. A keen observer of detail, he shares his passion for writing alongside being a developer. His backend knowledge of blockchain helps him bring a unique perspective to his writing
