According to Coinbase, institutions that purchased 10,939 BTC in December 2020 have not yet sold.
Bitcoin’s ( BitcoinTC ) price fell by more than half after reaching $69,000 six months prior, but it did not force its most wealthy investors to sell.
Notably, the number Bitcoin held by Coinbase Custody was up 296% in Q4 2020. This is a sign that most investors have decided to “hodl” onto their investments, despite the fact that the price of Bitcoin has fallen well above 50% from its highs.
In this example, institutions that had deposited 10,939 BTC with Coinbase Custody ($335 Million at May 31’s prices) in December 2020 when BTC/USD was about $23,000 have not moved since. On-chain data from CryptoQuant indicates.
Ki Young Ju, CEO at CryptoQuant, stated:
“For most cases, the exact same amount of Bitcoin is still in the (custodian] wallets. This was transferred out from Coinbase in December 2020 for highly probable institutional purchases.”
These institutions currently have 30% profit from their BTC investments. Their strong “hodling” sentiment is reflected in their decision to not unwind Bitcoin positions even though BTC/USD fell by more than half.
This also indicates institutions’ ability to withstand further falls in Bitcoin prices, at least until they drop below $23,000 breakeven for investors.
Is the Bitcoin bear market still going strong?
Since May 12, Bitcoin’s price fluctuated between $29,500 and $30,500, underscoring market indecisiveness in an environment with higher interest rates.
However, technical analysts predict that BTC’s current downtrend will continue.
PostyXBT, an independent market analyst , argues the token could fall towards its 200-week moving mean (the $20,000-22,000 range next), as shown below.
Rekt Capital , a popular analyst, adds that Bitcoin could drop towards the 200-week MA, which could cause it to form a bearish candle, which could lower its price to as low $15,500-19,000.
