Bitcoin's (BTC) price dropped by more than 50% after peaking out at $69,000 six months ago but the plunge did little in forcing some of its wealthiest investors into selling.
Notably, the number of Bitcoin under Coinbase Custody for institutional clients rose by 296% since Q4 2020, showcasing the most investors decided to "hodl" onto their investments despite BTC price down well over 50% from its all-time highs.
JUST-IN: #Bitcoin under @Coinbase Custody for institutional clients increased by 296% since Q4'20. pic.twitter.com/iILge2Cane
— CryptoQuant.com (@cryptoquant_com) May 30, 2022
For instance, institutions that deposited 10,939 BTC (~$335 million at today's price) with Coinbase Custody in December 2020, when BTC/USD was around $23,000, have not moved since, on-chain data from CryptoQuant shows.
Ki Young Ju, CEO of CryptoQuant, noted:
"For most cases, the same amount of BTC is still in the (custodian) wallets, which flowed out from Coinbase for highly likely institutional purchases in December 2020."
If this is the case, then these institutions are currently sitting on 30% profits from their BTC investments. Meanwhile, their decision to not unwind their Bitcoin positions, even when BTC/USD has plummeted by more than half, underscores their strong "hodling" sentiment.
That also points to institutions' ability to withstand additional declines in the Bitcoin price, at least until it drops below the investors' breakeven level of $23,000.
Bitcoin's price has been fluctuating inside the $29,500-$30,500 range since May 12, underscoring the market's indecision in a higher interest rate environment.
Related: On-chain data flashes Bitcoin buy signals, but the bottom could be under $20K
But several technical analysts anticipate that BTC's price would continue its prevailing downtrend.
For instance, PostyXBT, an independent market analyst, argues that the token could fall toward its 200-week moving average (the $20,000-22,000 range) next, as shown in the setup below.
Meanwhile, Popular analyst Rekt Capital adds that a drop toward the 200-week MA could also have Bitcoin form a bearish wick, which might take its price to as low as $15,500-$19,000.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
SunPump is in the process of a 100% on-chain buyback and burn process which will be completed within days. This move aims to strengthen SunPump’s position in the competitive meme coin market, but since the announcement, the Sun token price has dropped over 10%.
CatherineST Engineering showcased over 20 new AI solutions at its InnoTech Conference 2024, highlighting tools for fraud detection, emergency response, and hospital resource management. The event also introduced their innovative 5G System-on-Chip and deepfake detection tool, Einstein.AI, emphasizing the company’s commitment to advancing technology for solving contemporary challenges.
JoySpotify's platform is being inundated with AI-generated music and "fake artists," leading to concerns about the impact on genuine artists and the integrity of the music industry. Despite the massive influx and financial gains from these fake artists, Spotify's response has been insufficient, raising ethical questions about their commitment to authentic creativity.
AnaisA 19-year-old Singaporean man arranged to buy crypto in person but was allegedly struck during the deal, forcing him to flee with S$32,000 in cash. He evaded pursuit and returned home safely. Police have arrested two suspects, and investigations continue.
KikyoA crypto trader turned $5,000 into $670,000 in just 48 hours by investing in the newly launched Ethervista (VISTA) token, which is gaining attention as Ethereum's rival to Solana's Pump.fun. Ethervista's rapid rise includes a unique “fair launch model” and high gas consumption, contributing to its rapid market capitalization increase and significant token value surge.
WeatherlyScammers have developed a new tactic to defraud Solana users by burning their tokens seconds after purchase, using a Solana token extension to secretly erase crypto holdings. While the motives vary, the result is consistent: users lose their assets.
CatherineTapSwap, the popular "tap-to-earn" game, is set to launch its airdrop and token listing before October 30, 2024. The TAPS token will have a total supply of 18 billion, with initial price predictions ranging from $0.03 to $0.06.
AnaisTelegram’s W-Coin will launch its token on The Open Network (TON) after 68% of players voted in its favour, outpacing Solana and Ethereum. W-Coin is also moving up its Token Generation Event (TGE), with the date to be announced soon.
CatherineMonths after leaving OpenAI, co-founder Ilya Sutskever has raised $1 billion for his new AI startup, SSI. With just 10 employees, SSI will use the funds to enhance its computing infrastructure and recruit top talent. Will SSI merely replicate ChatGPT or surpass it in advancing AI?
KikyoTelegram has apologised and removed 25 deepfake porn videos in response to pressure from South Korean authorities. The company is now working to improve communication and compliance with South Korean regulations.
Joy