Institutions Offloaded Over $5,400,000,000 in Bitcoin (BTC) After Massive Crypto Outbreak: Incredible Researcher
An analyst at research firm Arcane Research says blue-chip investors sold billions of dollars worth of Bitcoin (BTC) over the past few months amid the downturn across crypto markets.
Exciting researcher Vetle Lunde says that major institutional players have unloaded a total of $5.4 billion in BTC since May.
“236,237 BTC.
That is the amount of known sales of Bitcoin since May 10 by major institutions…
The 236,237 BTC figure is derived from massive institutional explosions and other large known selloffs seen in the past two months.
The number does not take into account other natural capitulation and hedging activity that typically occurs during crypto bear markets.”
Lunde says the sales wave started with the implosion of the Terra (LUNA) ecosystem.
“It all started with Do Kwon.
Like LFG [Luna Foundation Guard] reached the original goal of BTC reserves of $3 billion, it took five days for TerraUSD (UST’s) link to crumble, and the 80,000 BTC reserve was deployed in a desperate attempt to save the link. LUNA collapsed, which led to contagion and more pressure on the sales side.
Around the same time, Tesla sold 75% of its BTC holdings. We estimate Tesla’s sales to be 29,060 BTC at an average price of $32,209.”
According to Lunde, the contagion also spread to crypto lending firms Celsius and Three Arrows Capital (3AC) a month later, leading to several BTC fire sales.
“On June 12, Celsius stopped withdrawing, and rumors of 3AC’s meltdown murmured. Leaked court documents have revealed that 3AC owes lenders 18,193 BTC and a GBTC equivalent of 22,054 BTC.
After the collapse, 3AC creditors hedged the exposure and de-risked in an attempt to fix the balance sheet holes while liquidating 3AC, leading to a proper fire sale.”
The researcher adds that most of the BTC sold were forced liquidations.
“The last two months have been an obvious capitulation. Most of the sales of the 236,237 BTC mentioned in this thread have been forced sales and it has probably been worse than what this thread covers with underwater shops and institutions capitulating.”
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