Since the bankruptcy of the Terra network, they have sold $ 5 billion in Bitcoin
Another thread around the Luna scandal in the background.
Arcane Research analyst Vetle Lunde shared on his Twitter statistics showing that since the implosion of the Terra cryptocurrency ecosystem in May, institutional investors have sold 236,000 Bitcoins (BTC), worth over $ 5 billion at current prices. Surprisingly, even Tesla was supposed to sell 29,060 BTC in May at an average price of around $ 32,200.
The whales have carried out a massive Bitcoin cryptocurrency sale since May
According to Lunde, massive institutional sales in the last two months began with the collapse of Terra on May 10 - when the founder of the cryptocurrency network sold over 80,000 BTC to defend the dollar threshold of his TerraUSD stablecoin (UST).
Since then, the contagion effect quickly spread across the industry and exacerbated sales pressure, leading to the disposal of 236,237 BTC by large companies and financial institutions. Lunde noted that "this figure does not take into account other natural capitulations and hedging activities that typically occur during cryptocurrency bear markets."
Publicly traded Bitcoin miners have also come under pressure, selling a total of around 4,450 BTC in just one month. Meanwhile, Tesla sold 75% of its stake in BTC, which translates to 29,060 BTC, according to Lunde's estimates. Tesla still owns 9,686 BTC - down from the 43,053 it acquired last February.
Given that Tesla sold 10% of its former stake for "liquidity testing" in Q1 2021, when Bitcoin's value rose, the electric car giant's new BTC threshold price fell from 34,841 to around $ 33,325. Consequently, during its big sale in May this year, Tesla surprisingly suffered only a small loss.
Bankruptcies hitting loan companies
In June, the dominant selling pressure was primarily due to a rise in the CPI (inflation), which again plunged the asset price significantly, bankrupting several whales that had already come under pressure after the fall of Luna.
Another hard blow was the collapse of 3AC, which affected lenders with other problems, namely Celsius and Voyager, who filed for bankruptcy the following month. A Singapore-based hedge fund owed lenders 18,193 BTC and other digital assets equivalent to 22,054 BTC, according to court documents, Lunde commented.
In addition to the massive 3AC liquidation that dragged the entire market down, a Canadian ETF called Purpose canceled 24,510 BTC between June 16 and June 20, further exacerbating the sell-off. As a result, the cryptocurrency with the highest market capitalization temporarily plunged below $ 17,700 in the second half of June.
The last two months have been a surrender phase, concluded Lunde. The degree of oversolding, however, could have been worse due to "retailers moving below the line and capitulating". So far, the ongoing rally of relief suggests some bearish pressure is declining, along with market uncertainty.
