The current quarter is also on track to be the second worst on record for BTC in nearly eight years since the start of 2014.
According to crypto data aggregator, Skew, Bitcoin is currently down almost 46% for the quarter, the weakest quarter since Q1 2018 – when it lost around 50% of its value in just three months. amid the fallout from the historic highs of 2017.
– bias (@skewdotcom) June 22, 2021
As of the start of 2019, the second quarter of 2021 is only the fourth quarter that has seen the value of Bitcoin drop, with the price of BTC falling about 10.6% in the first quarter of 2020, 13.6% in the fourth. quarter 2019 and 21.5% in the third quarter 2019.
Fat guys unload BTC
According to CoinShares June 21 Digital asset fund flow Weekly report, institutional investors continued to shed their Bitcoin exposure for the sixth week in a row, with BTC tracking investment products recording $ 89 million in seven-day cash outflows.
Overall, the combined crypto investment products experienced a third straight week of cash outflows, with investors withdrawing $ 79 million from the sector last week. However, CoinShares notes that multi-asset products saw inflows of $ 10 million, followed by Polkadot with $ 1.2 million and Ripple with $ 800,000.
Institutions aren’t the only ones reducing their exposure to Bitcoin, with data from on-chain analysis provider Glassnode revealing that OTC trading desks and miners are also offloading coins.
According to Glassnode, OTC desktops’ BTC holdings have fallen to their lowest level since March 2020, while miners have also sold in recent weeks amid China’s crackdown on Bitcoin mining.
#Bitcoin miners increased their distribution throughout June, as the mining industry experiences the largest migration in history.
However, $ BTC OTC office holdings hit a new local low, last seen in March 2020.
Read our analysis here https://t.co/dRbQgKkwfh pic.twitter.com/9MDXQfVB4l
— glassnode (@glassnode) June 23, 2021
But not everyone is capitulating, with popular Bitcoin podcaster Anthony Pompliano tweeting to his nearly one million subscribers that he’s racking up Bitcoin by average dollar cost regardless.
A report: Bitcoin Dips Below $ 30,000 To 6-Month Low: Check Out These Next Price Support Levels
Pomp describes himself as “an atrocious trader who is guaranteed to lose” and admits that he has “no idea how the price of Bitcoin will move in the near term”, which is why the influencer emphasizes its long-term outlook for BTC.
4 / The strategy of the average cost in dollars is based on the idea that “the time spent in the market is more important than the timing of the market”.
This has always been true for bitcoin. Assets have a compound annual growth rate of over 100% over the past decade.
– Pumps (@APompliano) June 22, 2021
Glassnode also notes that long-term holders – Bitcoin addresses which historically do not sell the coins they accumulate – have significantly increased their holdings since Bitcoin began to recover from all-time highs in April.
– Yann & Jan (@Negentropic_) June 22, 2021