Prior to the major GBTC unlocking event, both institutions and the retail industry seemed indifferent to the roughly $34,000 Bitcoin.
Institutions held their breath when buying more Bitcoin (BTC), even though the price was $34,000. According to the BTC balance data of the major exchange Coinbase, there have been few large-scale purchases in recent weeks.
Although the trading price of BTC/USD is more than 50% lower than its recent historical high, it is strange that many investors have little interest in buying supply. Whether it’s retail or institutional, adding Bitcoin to a portfolio doesn’t seem to be as attractive as it used to be, even with obvious “discounts.”
“I know this is getting old, but Coinbase Bitcoin exchange balances still continue to go sideways,” Jan Wuestenfeld commented on the data, tracked by on-chain analytics service Glassnode. “If we take that as a proxy for institutional demand is still low…”
Coinbase’s BTC balance continued to decline in 2021. This trend continued until the price surrender event in mid-May, when withdrawals clearly stopped. Since then, Coinbase’s Bitcoin reserves have only declined slightly.
Due to the Grayscale Bitcoin Trust (GBTC), institutional activities in July will be reorganized.
In the middle of the month, a major unlock event will give most investors the opportunity to sell their funds. If they choose to do so, it means selling pressure, and the possibility of a further decline in the price of Bitcoin may be the reason why there is currently little interest in buying.
This event is very important-once it is over, the overall selling pressure is expected to be significantly reduced.
At the same time, in terms of selling behavior, it was obvious that short-term holders (STR) were behind the decline, falling to a low of $28,600. As Glassnode pointed out in its latest weekly report The Week On-chain, this sentiment seems to be a panic sell-off-new investors are getting rid of BTC at a loss.
According to Glassnode, “A lot of underwater coins were spent this week. Please note that almost all long-term holders have made a profit, and their expenses actually offset a net loss of approximately US$383 million (the total realized loss is US$3.833!). Currently only 2.44% of the circulating supply is held by LTH Yes, unrealized losses.”