Bitcoin (BTC) and the general crypto market witnessed one of the most historic crashes on Wednesday, May 19. While the entire crypto market fell by $ 750 billion, Bitcoin lost more than $ 150 billion in a single day.
BTC is trading at $ 38,307 with a market cap of $ 716, and a classic war has ensued between Bitcoin whales and institutional Bitcoin buyers. The bitcoin price drop came after the big whale movements that flocked to the stock markets last week. This move started even before Elon Musk created sales pressure with just one tweet.
Looking at the Whale-Dump indicator right now, CryptoQuant CEO Ki-Young Ju explains the downward trend:
“The whales started investing BTC in exchanges when the price was $ 50,000. To be honest, before Elon’s tweets I was hoping for a rise, and then this curse happened after his tweet. I can’t blame it but it looks like a butterfly effect. Until this indicator cools down, I will maintain my bearish trend.
Ki-Young Ju stated that the whale dumping indicator reached a one-year high since the market crash in March 2020. “If this is a planned effort, it will fall again. Otherwise, we can at least retest the bottom, ”he added.
Bitcoin (BTC) Institutions Continue to Buy
As the BTC price dropped to $ 32,000 on Wednesday, institutional players rushed to Coinbase and other exchanges to make the most of the opportunity. In a FOMO purchase at Coinbase, the Bitcoin premium on the exchange went above $ 3000.
— unfolded. (@cryptounfolded) May 19, 2021
On the other hand, Bitcoin exchanges, possibly going to cold wallets, have also increased drastically. It has been reported that more than $ 750 million Bitcoin came out of the stock markets in a flash.
— Documenting Bitcoin 📄 (@DocumentingBTC) May 19, 2021
Industry giants like Michael Saylor and Ark Invest’s Cathie Wood also seemed confident about their Bitcoin prospects. Saylor said that “the organizations he controls have bought 111,000 BTC so far and have not sold a single satoshi” without selling any of the assets under his control.
Cathie Wood of Ark Invest said he is confident that Bitcoin will rise to $ 500,000 in the future. Finally, Elon Musk, the person behind the whole show, said Tesla was “Diamond Hands”. This phrase is used for investors who do not sell when an asset they own is falling, and who believe that the asset will exit again after falling for a while. So Musk continues to keep their Bitcoin purchases strong.