Quick take:
- Bitcoin has dropped hard from $19,300 levels to $17,800
- High chances it is retail traders selling
- The Bitcoin being sold will most likely be scooped up by institutions
- MicroStrategy, Grayscale, Paypal, Square, are likely to keep buying the Bitcoin dips
The highly anticipated Bitcoin correction has finally begun with the King of Crypto dropping from $19,300 levels to $17,800 in a span of 24 hours. At the time of writing, Bitcoin has regained the $18k support level and is trading at $18,098.
Bitcoin Being Sold by Retail Traders Will Most Likely Be Scooped up by Institutional Investors
Chances are, that the drop in the price of Bitcoin, is as a result of retail traders taking profits at levels between $18k and $20k.
According to a recent analysis by the team at Glassnode, 75% of long term Bitcoin holders were in a state of profit when Bitcoin was above $19k. Chances are, that some have decided to offload some of their Bitcoins at these levels to protect theirsgains.
However, according to the @100trillionUSD (also known as PlanB and the author of Bitcoin’s stock-to-flow model), some of the Bitcoin being sold now will most likely end up in the hands of institutional investors such as Grayscale, PayPal, Square and MicroStrategy.
PlanB made his forecast via the following statement that also warned that once this BTC was scooped up by the institutions, it will be locked up in cold storage forever.
Watch how traders, shitcoiners and weak hands transfer their #bitcoin to strong hands like Grayscale, Paypal, Square, MicroStrategy etc. These BTC will disappear from the market and go into deep cold storage and stay there for years.
Institutional Investors are Scopping Up Bitcoin Fast
In an earlier analysis, it was noted that the amount of Bitcoin held by private and public listed companies, had increased by 13% in less than 60 days. According to BitcoinTreasuries.org, 888,864 BTC is held by these companies. Furthermore, MicroStrategy recently announced it had raised $400 Million to buy more Bitcoin.
Chances are, that these same institutions are buying every single Bitcoin dip as they understand that BTC is a scarce asset that should be kept for the long haul.
