Bitcoin has recently faced intense selling pressure, with its price dropping well below $54,000 in August. This noticeable drop has been largely driven by significant selling activity from institutional investors, a trend that has sent the crypto market into a state of flux.
Institutional sell-off hits Bitcoin hard
According to Wise Advice, a prominent crypto influencer, one of the main drivers behind Bitcoin’s recent price drop is the sell-off by institutional investors. Recent data reveals that there has been significant transfer of Bitcoin to exchanges, a clear indication that large institutional players are taking profits or repositioning their portfolios.
The institutional sell-off is led by Fidelity, one of the prominent players that sold 16,000 BTC, worth around $915 million. Followed by Grayscale that sold 15,000 BTC, worth around $858 million.
Later comes Ark Invest, which also contributed to the selling pressure by shedding 7,000 BTC worth around $400.4 million. In addition, Ceffu recently sold almost 3,124 BTC, which amounts to a total of around $178 million.
BlackRock maintains neutral stance
Despite these significant sales, BlackRock has maintained a neutral stance, avoiding both buying and selling Bitcoin at this time. This position contrasts sharply with the active selling strategies of other large institutions.
Possible buying opportunity?
While the short-term outlook seems bearish due to the current selling pressure, Wise Advice emphasizes that this is not a long-term downturn for Bitcoin. For long-term investors and investors looking for entry points, the current dip could provide an opportunity to accumulate more Bitcoin at discounted prices.
See Also: Bitcoin Price Prediction: What to Expect With So Much Selling Pressure?
