Institutions dumped over $5,400,000,000 worth of Bitcoin (BTC) after massive crypto explosions: Arcane Researcher
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 the downturn in crypto markets.
Arcane researcher Vetle Lunde says major institutional players have offloaded a total of $5.4 billion in BTC since May.
“236,237 BTC.
This is the amount of known bitcoin sales by major institutions since May 10th…
The 236,237 BTC figure comes from massive institutional explosions and other large known selling seen over the past two months.
The number does not account for other natural capitulation and hedging activity that typically occurs during crypto bear markets.”
According to Lunde, the sell-off began with the implosion of the Terra (LUNA) ecosystem.
“It all started with Do Kwon.
As LFG [Luna Foundation Guard] Having reached its initial $3 billion BTC reserve target, it took five days for the TerraUSD (UST) peg to fall into tatters, and the 80,000 BTC reserve was used in a desperate attempt to salvage the peg. LUNA collapsed, leading to contagion and more selling pressure.
Around the same time, Tesla sold 75% of its BTC holdings. We estimate Tesla’s sales at 29,060 BTC at an average price of $32,209.”
According to Lunde, the contagion also spread to crypto lending firms Celsius and Three Arrows Capital (3AC) a month later, prompting further BTC fire sales.
“On June 12, Celsius halted redemptions and rumors of the 3AC meltdown began to circulate. Leaked court documents have revealed that 3AC owes the lenders 18,193 BTC and a GBTC equivalent of 22,054 BTC.
After the collapse, 3AC’s creditors hedged and de-risked to plug the balance sheet holes while liquidating 3AC, resulting in an orderly fire sale.”
The researcher adds that most of the BTC sold were forced liquidations.
“The last two months have been an apparent capitulation. Most of the sales of the 236,237 BTC mentioned in this thread were forced sales, and it was probably worse than what this thread is covering with the underwater retail and institutional capitulation.”
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