Institutional investors aren’t buying Bitcoin at 50% of all-time highs …for now


Institutions are breathing when it comes to buying more Bitcoin (BTC), even at $ 34,000.

According to data covering BTC balances at major exchange Coinbase, little massive buying has taken place in recent weeks.

Institutional demand is “still low,” says an analyst

Despite BTC / USD trading more than 50% below its recent all-time highs, there is curiously little interest in buying the stock for many investors.

Whether retail or institutional, adding Bitcoin to portfolios seems to be just not as appealing as before, even with an obvious “discount”.

“I know this is getting old, but Coinbase Bitcoin exchange balances are still going sideways,” researcher Jan Wuestenfeld commented on the data, tracked by online analytics service Glassnode.

“If we consider that as a proxy for institutional demand, that’s still low …”

Coinbase’s BTC balance sheet has seen successive steps down through 2021. The trend was consistent until the price of surrender price from mid-May, when withdrawals obviously ceased. Since then, Coinbase has seen only small declines in its Bitcoin reserves.

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Coinbase BTC balance against BTC / USD chart. Source: Jan Wuestenfeld / Twitter

As Cointelegraph reported, July should see a shake-up on institutional performance thanks to the Grayscale Bitcoin Trust (GBTC).

In mid-month, a major unlocking event will give much of the investor base a chance to sell their funds. If they choose to do so, selling pressure is underestimated, and the possibility of the Bitcoin price slipping further could be the reason why there is currently little interest in buying.

The event is important – after sales pressure will decrease significantly overall.

1 week, $ 3.8 billion realized losses

Meanwhile, when it comes to selling behavior, obviously short-term owners (STRs) are behind the roads, which have seen lows of $ 28,600.

Related: Active Bitcoin miners are now ‘unlikely’ sellers thanks to a profitable acceleration – Data

As Glassnode noted in the latest weekly reports, The Chained Week, the mood very much seems to be panic selling – new investors are getting rid of BTC loss.

“A very large volume of coins was spent underwater this week,” Glassnode explained.

“Note that almost all Long-Term Owners profit and their expenses offset about $ 383M in net losses (total realized loss was $ 3.833B!). Currently only 2.44% of the circulating stock is owned by LTHs with unrealized loss. “

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Bitcoin network has realized an annotated diagram. Source: Glassnode