Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Bitcoin: Who Is Selling And Buying Right Now?

Published 05/20/2021, 06:34 AM
Updated 07/09/2023, 06:32 AM

Retail and institutional investors behave differently in the times of large corrections on the crypto market. The current 50% Bitcoin retracement from its historical high is no different.

Elon Musk’s change of mood coincided with an overheated market that has growth threefold this year alone. Tesla (NASDAQ:TSLA) has not sold its coins (as claimed by Musk) but its refusal to accept BTC as payment has triggered a slight panic on the market.

As in the last year, retail investors began to transfer their Bitcoins from their wallets to exchanges to sell them. Meanwhile, institutional investors are buying the cryptocurrency at lower prices. The difference in the behavior of the two groups of market players come to the surface thanks to the different types of target audiences of different exchanges. Retail investors primarily trade on Binance, while Coinbase's (NASDAQ:COIN) trading volumes are primarily provided by institutional players.
Image source: glassnode.com

On May 17, Binance registered an inflow of 26,000 BTC, while Coinbase registered an outflow of 146 BTC. Similarly, big players were buying the fall in March 2020.
The MicroStrategy CEO Michael Saylor is not far behind, having announced a purchase of 229 BTC (%10 million) on May 18 at an average price of $43,633 per BTC. The company’s total balance exceeds 92,000 BTC ($2.3 billion).

Meanwhile, different analysts demonstrate different approaches. Thus, Carter Worth from Cornerstone Macro predicts a drop to $29,000, which corresponds to the coin’s traditional big retracement worth 55% from its ATH. Bank of America has surveyed 194 investment fund managers and has found a growing interest toward Bitcoin as a long-term investment.
Image source: cointelegraph.comThere is a third category of investors who do not choose between buying and selling Bitcoin but invest in the most promising altcoin – Ethereum. At present, its market capitalisation is worth 45% of Bitcoin.
Image source: All-in-one crypto platform StormGain

The founder of Investment Ark believes that institutional investors underestimate Ethereum, so her fund has bought Ethereum Grayscale Trust shares for $21 million in the first quarter. It was the right choice as Ethereum Grayscale Trust shares have grown by 179% this year as Grayscale Bitcoin Trust shares – only by 1.7%.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.