[Blockchain Today Reporter Kim So-yeon] As Bitcoin (BTC) fails to recover to the 50,000 dollar level, it is under new short-term sales pressure. However, even short-term loss does not neutralize the market, Cointelegraph reported.
With the price of Bitcoin (BTC) falling below $46,000 for the second time in four days on the 16th (local time), deeper short-term correction predictions for digital currencies are increasing. According to Trading View, Bitcoin fell to $45,127.01 and then slightly recovered to $45,400. Bitcoin fell 5% that day, and has declined more than 20% over the last 7 days.
The decline in BTC has affected the correction of the cryptocurrency market as a whole. ETH (Ethereum) decreased by 7%, Polkadot (DOT) decreased by 10%, and Binance Coin (BnB) decreased by 3%.
Market sentiment dwindled a few days after Tesla said it would no longer accept Bitcoin payments for its cars. In addition, a possible investigation by the US Department of Justice’s Binance is making headlines in the press, raising concerns over potential regulations.
Meanwhile, Caitlin Long of Avanti Digital Bank believes that the release of Tether’s first deposit has scared investors. Long said in an article posted on Twitter on the 15th that “the credit exposure has increased the severity of Tether’s default loss.” In other words, almost two-thirds of the company’s cash and cash equivalents are stored in corporate papers. Has been.
But despite all the turmoil in the market today, institutions are constantly accumulating bitcoins with confidence, providing solid evidence that the market’s end to the bull market is still far away.
Bitcoin Treasuries, which tracks corporate and institutional exposure to BTC, reported on the 15th that the institution has accumulated 215,000 Bitcoins over the past 30 days. This is worth about 10 billion dollars.
Companies that put Bitcoin on their balance sheet generated significant investment returns. According to a Bitcoin Treasury report on May 12th, the value of MicroStrategy’s BTC holdings has increased by 2.3 times. The value of Square’s bitcoin storage has also increased by 2.1 times. The holding value of Riot Blockchain has also increased by 9 times. This figure has only declined slightly during the recent market adjustment.
Institutions buy bitcoins during the better of the year. These so-called smart money investors are one of the biggest factors driving BTC from $10,000 last summer to $64,000 in April.
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