Institutions Buy 100K Bitcoin in One Week

Bitcoin institutional investors have significantly increased their holdings, adding 100,000 BTC in just one week, according to recent analysis. This surge in accumulation comes as Bitcoin’s price hovers around multi-month lows, indicating a strong conviction among institutional players to ‘buy the dip.’

• Institutional investors added 100,000 BTC in one week.
• The total value of the new purchases is approximately $5.7 billion.
• This accumulation is the largest since March.
• The buying spree continues despite Bitcoin’s price decline.

Institutional Buying: A $5.7 Billion Investment

On-chain analytics platform CryptoQuant revealed in a Quicktake blog post on July 11 that institutional investors have purchased 100,000 BTC in just one week. This significant buying activity is valued at around $5.7 billion.

Cauê Oliveira, a contributor to CryptoQuant, analyzed the change in wallet balances of entities holding between 1,000 and 10,000 BTC. These entities, representing the institutional side of the Bitcoin investor base, have rapidly increased their exposure since the start of June. During this period, BTC/USD has fallen by up to 23%.

Conviction Amid Price Decline

Despite Bitcoin hitting its lowest levels since late February, institutional buying has continued unabated. Oliveira noted that while many novice investors capitulated last week, institutional players engaged in the largest accumulation process since March.

In terms of 30-day rolling balance change, the recent jump matches the inflows seen during the height of the United States spot Bitcoin exchange-traded funds (ETFs) in March. However, with ETF inflows comparatively cool, the destination for the BTC lies elsewhere.

A True ‘Buy the Dip’ Strategy

Oliveira concluded that the current institutional accumulation might indicate a genuine ‘buy the dip’ strategy among large players, unlike the demand linked to fundraising seen in March. While March’s daily inflows topped $1 billion, the current day-to-day numbers are smaller. Data from sources, including United Kingdom-based investment firm Farside Investors, shows around $79 million for July 11, while July 8 saw $294 million—the highest tally in a month.

Market Sentiment and Short-Term Holders

As reported by Cointelegraph, other cohorts of Bitcoin holders face challenges as they hold significant funds ‘in the red.’ Short-term holders, including newcomer whales, faced 17% in unrealized losses during last week’s dip to $53,500. The aggregate cost basis of the short-term holder investor base, defined as entities holding a given unit of BTC for up to 155 days, sits above $64,000, according to on-chain analytics firm Glassnode.

Overall, crypto market sentiment remains gloomy, with the Crypto Fear & Greed Index dropping back to ‘extreme fear’ for the first time since January.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.