Bitcoin’s price has fluctuated by over 20% in the past month, dropping from $67,000 to $53,000. Despite this, institutional investors have continued to invest in cryptocurrency, adding over 100,000 BTC to their portfolios, indicating strong confidence in Bitcoin’s long-term value, according to data from CryptoQuant.
Institutional investors’ interest in Bitcoin has increased.
Given the downward trend in the price of bitcoin caused by several political and economic causes, June was a difficult month for the price of bitcoin.
Yuya Hasegawa, a crypto market analyst for Bitbank, told Techopedia that there could have been three reasons for Bitcoin’s decline in June:
- The unexpected French election raised concerns about financial market stability and strengthened the dollar.
- As they decreased their Bitcoin holdings from 50,000 in May to 30,000 in June, the German government put more pressure on sellers to sell.
- Mt. Gox’s Bitcoin and Bitcoin cash repayments to creditors raised the crypto industry’s alert, causing the company to release approximately 143,000 BTC into the market.
The German government is struggling to sell BTC at desirable prices due to low liquidity, causing some BTCs to be sent back to exchanges. In spite of this, data from users of CryptoQuant shows that institutional investors have managed to amass more than 100,000 BTC in the last month.
The user observed a similar trend in BTC accumulation in March when the BTC ETF was launched, but the funds generating BTC themselves accumulated a significant portion. A potential ‘buying drop’ in major players is indicated by the present cycle of rising institutional BTC accumulation.
Bitget CEO Gracy Chen suggests recent trends may indicate a possible trend reversal, as large investors’ activity increases liquidity and signals a new market phase. Understanding these dynamics aids in informed investment decisions.
Which organizations are buying bitcoin?
Even though it’s difficult to pinpoint exactly which institutions are purchasing significant amounts of Bitcoin, several of the largest acquisitions in the previous month made headlines.
Metaplanet
Metaplanet, a Japanese investment and consulting company, has announced plans to purchase one billion yen of BTC for long-term holding. The company has previously purchased 200 million yen worth of BTC and a second 400 million yen worth of BTC, bringing its BTC holdings to surpass 203 BTC. The decision comes after several previous purchases.
MicroStrategy
A news statement revealed that MicroStrategy, a publicly traded software company, has lately made significant Bitcoin purchases. MicroStrategy owned 226,331 BTC ($8.33 billion). This move aligns with the classic buy-and-hold (HODL) approach used by institutional investors for long-term cryptocurrencies.
Semler Scientific
In May, Semler Scientific made Bitcoin its principal reserve asset by paying $40 million for 581 bitcoins. The company also declared intentions to buy an additional $17 million worth of bitcoin in June 2024. As on June 6, 2024, the business had 828 Bitcoin.
The bottom line
Institutional investors have shown strong confidence in Bitcoin’s long-term potential, accumulating over 100,000 BTC in the past month, suggesting a strategic buy-in strategy.
High-profile companies like Metaplanet, MicroStrategy, and Semler Scientific have made significant BTC purchases, boosting market liquidity and signaling a potential market phase shift. This growth is expected to stabilize prices and enhance Bitcoin’s attractiveness as a reliable investment.
