This group seems to be responsible for the drop in prices for Bitcoin (BTC)
Chainanalysis recently released a report showing that the volume of cryptocurrency trading has reached a new historic record, mostly generated by bears.
Institutes have abandoned
On March 9, exchanges around the world saw bear activity selling Bitcoin. Blockchain analytics chain Chainanalysis said the trades tracked received around 475,000 Bitcoins on March 12 and 13, which is well above average.
The whole sale took place in the general panic caused by the corona virus, as the stock markets, oil and other traditional assets fell into a new depression and the central banks injected more and more money in these markets.
Although Bitcoin is generally considered a safe haven, especially at times like these, the price has dropped by more than half since February. Not surprisingly, institutional investors in particular sold Bitcoin.
Chain analysis revealed that 10 to 100 and 100 to 1000 Bitcoin accounted for around 70% of all Bitcoin sent and received by crypto exchanges in the past few days, which is a slightly higher proportion than d habit. 10% of them come from transactions of more than 1,000 Bitcoin.
“These trends indicate that professional resellers with fuller bags and investors have stimulated the market, but have been supported by large numbers of retailers in both selling and buying.”
The questions that have arisen are whether retailers can push prices up on their own again and whether institutional investors will return to the market. Bitcoin has been working sideways since last Thursday, while traditional markets have further collapsed. The BTC has even posted a 4% gain since the last market downturn.
“Given the uncertainty surrounding the COVID 19 pandemic, it is difficult to predict where the Bitcoin market will go.”