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After institutional investors transferred a large amount of capital to the Bitcoin and altcoin markets last week, cryptocurrency prices started to fall when they stopped these purchases. According to data from blockchain analysis platform Lookonchain, institutional investors in particular purchased billions of dollars worth of Bitcoin last week, but when these purchases stopped, there was a selling pressure in the market.
It was stated that USDT transfers from the Tether treasury to institutional investors’ accounts and the transfer of these USDTs to cryptocurrency exchanges stopped two days ago. Following this development, the Bitcoin price lost 4% on a daily basis with the decrease in buying pressure in the market, falling to $58,817.
It can also be seen in the spot ETF data in the US that the buying wave that carried the Bitcoin price up last week has stopped. On Friday, there was a net outflow of $89.7 million from spot Bitcoin ETFs. On the same day, a decrease of more than $15 million was observed in spot Ethereum ETFs.
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Institutional and individual investors viewed the cryptocurrency market crash at the beginning of last week as a buying opportunity. In the few days after Monday, a total of $1.3 billion worth of USDT was sent from the Tether treasury to exchanges and market makers. During this process, the total supply of the two largest stablecoins, USDT and USDC, increased by $3 billion thanks to the volatility experienced throughout the week.
This pause once again highlighted the important role played by institutional investors in cryptocurrency markets and how such large-scale purchases and sales can affect prices.
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