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- The crypto market witnessed a considerable decline in the prices of Bitcoin by an amount of $30,000, which it had gained at the start of 2021
- Institutional investors like MicroStrategy have invested their assets in purchasing BTC, although the prices fell to a very much lower value
- Experts and data analysts explain that these investors are approaching more in a ‘buying-the-dip’ type of method of waiting and watching the upcoming results
The entire market has witnessed the rollercoaster ride of Bitcoin’s price. It has lost almost its entire dynamic gains accumulated at the start of the year, 2021. Despite such volatile changes taking place in Bitcoin’s market value, its investors have not given up. They are continuing to support and invest and purchase in this cryptocurrency, ignoring the markets’ prevailing sentiments.
The datasheet from Glassnode reveals a list of addresses. It includes more than 1,000 whales, although the prices of Bitcoin dropped by a level of $30,000 on Thursday. A decline in the number of investors in the address list posted by Glassnode was seen in December 2020. But recently the number of investors has increased again and is still increasing at a great rate.
OTHER DYNAMIC CHANGES HAPPENING WITHIN BITCOIN
Keeping in view all the lows that the cryptocurrency is presently going through, for its prices, the number of transactions that are being performed on the network of Bitcoin are still at a very high level. This data was published in the firm CryptoQuant, a blockchain analytics company based in South-Korea. This data was for Bitcoin-bitcoin transactions. However, the transactions made with other network sources have not risen from their past levels. This indicated a considerable number of OTC (Over-The-Counter) deals, a much more reliable transaction method for investors at an institutional level.
FEW HUGE PURCHASES THAT HAPPENED DURING THE DIP PERIOD
MicroStrategy revealed in the market that it had spent $10 million in purchasing 314 additional Bitcoins during the very recent sell-offs. On another hand, Ki-Young Jun, the CEO of CryptoQuant, mentioned in an interview that only about 7% of the total transactions that were made over the network were used for withdrawals and exchanges. A percentage as high as 93% had been used for making OTC deals using Bitcoin’s network.
Another market report that was received from OKEx Insights told that the institutional investors followed a pattern of ‘buying-the-dip’ instead of waiting for further results of the company by approaching the ‘wait-and-see’ method. Once Paul Tudor Jones announced that he would be entering Bitcoin, a whole of Institutional investors stacked behind Bitcoin, to invest their assets. All these buying led to a parabolic increase in the cryptocurrency price.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
