Bitcoin Critic Calls ‘Institutional Demand’ A Myth Following Recent Price Slump
July 07 2024 - 3:29AM
NEWSBTC
Popular Bitcoin critic Peter Schiff dismisses claims of growing
institutional interest in the maiden cryptocurrency. Schiff’s
challenging statement comes following the recent Bitcoin market
sell-off which resulted in a 10% price decline on Friday. Related
Reading: Market Expert Predicts When Bitcoin Price Will Reach Its
Cycle Highs Peter Schiff Claims Little Institutional Demand For
Bitcoin According to blockchain analytics platform Lookonchain, the
German and US governments, and defunct crypto exchange Mt. Gox have
moved a combined 17,788 Bitcoin valued at $1.08 billion to
exchanges since June 19. In particular, the German government
has sold parts of its BTC holdings every day since the start of
July transferring out a substantial 3,000 BTC, worth around $175
million, on Thursday. The constant sell-off by the German and
US authorities coupled with Mt. Gox repayments to creditors which
are expected to be sold, soon resulted in massive selling pressure
on BTC, forcing the token’s price down from $60,097 on Thursday to
as low as $53,971 on Friday. Commenting on this event, Schiff
stated in an X post on Saturday, that Bitcoin’s price slump
demonstrated that the institutional demand for the market leader
was overestimated. While the Bitcoin critic acknowledged that
market sell-off contributed to the asset’s decline, he also
emphasized the absence of a high institutional demand, which if
existed, should jump at the chance to buy the massive amount of
Bitcoin that has been sold. Schiff’s comments are likely targeted
at popular sentiments that Bitcoin’s institutional demand has been
on the rise following the introduction of the Spot Bitcoin ETFs in
January. Notably, the market leader embarked on an upward
trend in the first quarter of 2024 rising to a new all-time high of
$73,750, a development which coincided with the rapid growth of the
Spot Bitcoin ETF market which hit a $10 billion trading volume in
March. Related Reading: Bitcoin Woes Not Over? Analyst Predicts
Further Crash To $47,000 Bitcoin Poised For Market Rebound, Analyst
Says In other news, popular crypto analyst Rekt Capital has
postulated that Bitcoin may be preparing for a market recovery
following the recent price dip. In an X post on Saturday, Rekt
Capital noted that Bitcoin closed its daily trading above $56,750
allowing the token to continue to remain within the range low area
of $60,600. According to the analyst, if BTC continues to cluster
around the price region, it could soon launch a price rebound
reaching as high as $71,000. At the time of writing, the premier
cryptocurrency continues to trade at $58,189 with a 2.45% increase
in the last day. However, BTC’s daily trading volume remains down
by 63.35% and is valued at $20.61 billion. Featured image from
Market Insider, chart from Tradingview
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