Bitcoin
Bitcoin critic calls ‘institutional demand’ a myth after recent price drop
Popular Bitcoin critic Peter Schiff has dismissed claims of growing institutional interest in the inaugural cryptocurrency. Schiff’s defiant statement comes after the recent Bitcoin market sell-off that saw its price drop by 10% on Friday.
Peter Schiff Says There Is Little Institutional Demand for Bitcoin
According to the blockchain analytics platform Lookonchainthe German and US governments and the now-defunct cryptocurrency exchange Mt. Gox have moved a total of 17,788 Bitcoins valued at $1.08 billion to exchanges since June 19.
In particular, the German government has been selling off portions of its BTC holdings every day since early July, transferring a substantial 3,000 BTC worth around $175 million on Thursday. The steady liquidation by German and U.S. authorities, coupled with Mt. Gox’s repayments to creditors that were due to be sold, soon resulted in massive selling pressure on BTC, forcing the token’s price to fall from $60,097 on Thursday to $53,971 on Friday.
Commenting on this event, Schiff stated in a Post X on Saturday that Bitcoin’s price drop demonstrated that institutional demand for the market leader was overestimated. While the Bitcoin critic acknowledged that the market sell-off contributed to the asset’s decline, he also emphasized the lack of high institutional demand, which if it existed, should have jumped at the chance to buy the massive amount of Bitcoin that was sold.
Schiff’s comments are likely directed at popular sentiments that institutional demand for Bitcoin has been increasing following the introduction of Spot Bitcoin ETFs in January. Notably, the market leader embarked on an upward trend in Q1 2024, reaching a new all-time high of $73,750, a development that coincided with the rapid growth of the spot Bitcoin ETF market, which reached a trading volume of US$ 10 billion in March.
Bitcoin Poised for Market Recovery, Says Analyst
In other news, popular cryptocurrency analyst Rekt Capital has posited that Bitcoin may be gearing up for a market rally following its recent price drop. In a Post X On Saturday, Rekt Capital noted that Bitcoin closed its daily trading above $56,750, allowing the token to remain within the low area of $60,600.
According to analystIf BTC continues to rally around the price region, it could soon launch a price recovery towards $71,000. At the time of writing, the leading cryptocurrency continues to replacement at $58,189 with a 2.45% increase over the past day. However, BTC’s daily trading volume remains down 63.35% and is valued at $20.61 billion.
Featured image from Market Insider, chart from Tradingview