The normal impression in the market is that Bitcoin has gone broke. The flagship cryptocurrency that was trending at a high score of $65000 at one point has now plunged to levels lower than $40K. This has been the case since several bad news struck down the leading coin. However, several data analytics keep informing the investors that institutions have continued to buy the dip.
A few days ago, Kevin O Leary, the co-host of Shark Tank, told AD Ameritrade channel that all such news is bogus. However, today the data analytics broadcasted by Chainalysis indicate that crypto whales are awake and they are circling the crypto markets to make their changes. The data shows that major buyers have bought about 2.85 billion worth of Bitcoin since the leading digital asset went down below $40K.
New Bitcoiners Seem to have Come Late to the Party
In the beginning, Bitcoin was not taken seriously. However, when Tesla boss Elon Musk bought about 1.5 billion worth of Bitcoin in February, it sent the popularity of the beacon coin through the roof. Not only retail investors started to show an interest in Bitcoin, but institutional enterprises like JP Morgan, Ark Investment, Goldman Sachs, Grayscale, and many others started to add Bitcoin to their balance sheets in bulk.
As the price of cryptocurrency started to propel towards the moon, more people started to talk about Bitcoin. The main reason for the popularity of Bitcoin is that any person without having to be accredited investors would purchase Bitcoin. Meanwhile, those who only added Bitcoin in the last few weeks have reportedly suffer from a loss of 5% to 25% after liquidating their positions during the price drop.
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Investors are Busy Sending their Investments to Cold Wallets
Bitcoin has managed to make a point as a good store of value. The professional investors who are aware of the market’s ups and downs have made considerable profits. Enterprises like Tesla and MicroStrategy have increased the stock value of their companies by adding Bitcoin to their balance sheets. Others are trying to get a Bitcoin ETF registered for taking a profit to the next level.
Meanwhile, Bitcoin that made up about 50% of the entire crypto market cap, has lost about 300% of its price value since its last ATH. The flagship cryptocurrency is changing hands at $33K at press time. While good news has brought Bitcoin back to life on several occasions, going above 40K seems more and more unrealistic for Bitcoin. In the last week, Bitcoin lost about $3.2 billion from its market cap alone.
