• Sun. Aug 14th, 2022

Institutions Unloaded Over $5,400,000,000 in Bitcoin (BTC) After Massive Crypto Blasts: Arcane Researcher

ByHazel R. Lang

Jul 26, 2022

An analyst at digital asset analytics firm Arcane Research says blue-chip investors have sold billions of dollars worth of Bitcoin (BTC) over the past few months amid slowing crypto markets.

Arcane Seeker Vetle Lunde said that large institutional players have offloaded a combined total of $5.4 billion in BTC since May.

“236,237 BTC.

This is the amount of known Bitcoin sales since May 10 by major institutions…

The 236,237 BTC number is derived from massive institutional blowouts and other known large selloffs seen over the past two months.

The number does not take into account other natural capitulation and hedging activity that typically occurs during crypto bear markets.

Lunde says the sell-off started with the implosion of the Terra (LUNA) ecosystem.

“It all started with Do Kwon.

Like LFG [Luna Foundation Guard] reached its initial BTC reserve target of $3 billion, it took five days before the TerraUSD (UST) peg was in shambles, and the 80,000 BTC reserve was deployed in a desperate attempt to salvage anchoring. LUNA collapsed leading to contagion and more sell side pressure.

Around the same time, Tesla sold 75% of its BTC holdings. We estimate Tesla sales at 29,060 BTC at an average price of $32,209.

According to Lunde, the contagion also spread to crypto lenders Celsius and Three Arrows Capital (3AC) a month later, sparking more BTC fire sales.

“On June 12, Celsius halted withdrawals and rumors about 3AC collapsing circulated. Leaked court documents revealed that 3AC owes the lenders 18,193 BTC and a GBTC equivalent of 22,054 BTC.

Following the collapse, 3AC’s creditors hedged and reduced their exposure by attempting to repair balance sheet holes while liquidating 3AC, causing a real fire sell.

The researcher adds that most of the BTC sold were forced liquidations.

“The past two months have been an obvious sell-out. Most of the 236,237 BTC sales mentioned in this thread have been forced sales, and that’s probably worse than what this thread covers with underwater retail and capitulating institutions.

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Featured Image: Shuttersock/Vadim Sadovski

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