Large companies have sold $ 5.5 billion worth of BTC
Since May 10, 236,237 bitcoins (worth $5.452 billion) have been sold by "large institutions"
On Twitter, Arcane Research analyst Vetle Lunde details how and when many institutional bitcoin holders started selling their bitcoins. Lunde stated that "it all started with Do Kwon."
The Luna Foundation Guard (LFG) organization, which controlled the funds of the Terra project, dropped 80,081 BTC in May in an unsuccessful attempt to protect the binding of its native stable coin Terra USD (UST).
The collapse of Terra apparently caused some Bitcoin (BTC) miners to face pressure from sellers. According to Lunde's estimates, in the period from May to June, miners sold 19,056 coins. In some cases, miners sold more than their monthly production, probably from reserves.
The Luna Foundation Guard (LFG) organization, which controlled the funds of the Terra project, dropped 80,081 BTC in May in an unsuccessful attempt to protect the binding of its native stable coin Terra USD (UST).
The collapse of Terra seems to have forced some miners to sell bitcoins. According to Lunde's estimates, in the period from May to June, miners sold 19,056 coins. In some cases, miners sold more than their monthly production, probably from reserves.
Lunde noted that when miner sales peaked, Elon Musk's Tesla also pressed the red button and sold 29,060 BTC by the end of the second quarter. At the same time, the crypto investment company Three Arrows Capital (3AC) had excessive debt and owed creditors 18,193 BTC and coins equivalent to 22,054 BTC.
Lunde also added that at the end of June, the Canadian Purpose Bitcoin exchange-traded fund (ETF) had a massive repayment of 24,510 BTC, which "created additional pressure on the market." This repayment accounted for 51% of the assets of this ETF.
BTC Market Growth
Despite the fact that there has been huge pressure from organizations in the cryptocurrency markets in recent months, the bitcoin market remains surprisingly stable.
Trading volumes also remained higher during the 2022 market downturn compared to the 2017 bull market peak. According to CoinGecko, on December 17, 2017, the daily bitcoin trading volume reached the peak of the $12 billion cycle, and in July 2022, the daily trading volume exceeded $20 billion.
Yongjin Kim, CEO of Singapore-based market maker Presto Labs, agreed with Lunde that the liquidation of 3AC and other companies caused a significant drop in prices in June, but believes that the price of BTC will return to $30,000 over the next few months.
On July 21, he told Cointelegraph that "these liquidations have caused the bitcoin price to fall below the fundamental equilibrium price," leading him to believe that prices will return "to $30,000 in the next few months."
https://coin-signal.com/cryptonews/large-companies-have-sold-5-5-billion-worth-of-btc/
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