YEREVAN (CoinChapter.com) — Institutional investors are buying Bitcoin as its price hits multi-month lows. According to CryptoQuant, these investors added 100,000 BTC in just one week, totaling $5.7 billion. This significant buying shows strong interest among large-scale investors despite Bitcoin’s fluctuating value.
Institutional Investors Increase Bitcoin Holdings Despite Market Dip
CryptoQuant contributor Cauê Oliveira analyzed wallet balances of entities holding between 1,000 and 10,000 BTC. These entities, representing institutional investors, have increased their Bitcoin holdings significantly since early June. During this period, BTC/USD has fallen by up to 23%. Despite this drop, institutional buying has picked up, indicating a strategic move to accumulate more BTC during the dip.
“While many novice investors capitulated last week, with special emphasis on coins purchased between 1 and 3 months ago, institutional players made the largest accumulation process since March,”
Oliveira summarized.
Institutional BTC Buying Shifts from ETF Inflows to “Buying the Dip”
In March, institutional buying was linked to inflows of U.S. spot Bitcoin ETFs. This time, the scenario is different. The current institutional accumulation appears to be a true “buying the dip” process. March’s daily inflows topped $1 billion, while recent day-to-day numbers are smaller. Data from Farside Investors shows $79 million for July 11 and $294 million on July 8, the highest in a month.
Short-Term Bitcoin Holders Face Significant Losses Amid Market Dip
As institutional investors buy more BTC, short-term holders are experiencing significant unrealized losses. According to Glassnode, short-term holders, including newcomer whales, faced 17% in unrealized losses during last week’s dip to $53,500. The aggregate cost basis for these short-term holders is above $64,000, highlighting the challenging market conditions they face.
Crypto Market Sentiment Hits “Extreme Fear” Levels for First Time Since January
The overall sentiment in the crypto market remains negative. The Crypto Fear & Greed Index has dropped back to “extreme fear” for the first time since January. This index reflects the apprehension and uncertainty among investors amid the current market conditions.
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