The Bitcoin (BTC) price is up 12% today aiming to surge past $40,000 levels after Elon Musk tweets that Tesla will once again resume Bitcoin transactions once 50% of the mining industry turns to renewables. However, Bitcoin has continued to remain on a serious decline and trading sideways over the last month.
But this hasn’t deterred institutional players from further accumulation. Canada’s Purpose Bitcoin ETF accumulated nearly 2000 Bitcoin’s over the last month with its total assets under management now worth nearly $900 million. as per data provided by Bybt, Purpose has accumulated nearly 2000 Bitcoins over the last month. Just over the last week, it added nearly 300 BTC to its kitty.
Well, it clearly shows that institutional players are buying at every stage of the dip. Besides, as Bitcoin continues to oscillate in the $30K-$40K range long-term holders have been squeezing more supplies in their kitty.
Bitcoin Whales Squeeze More BTC
As CoinGape reported last week, Bitcoin whales accumulated over 80,000 Bitcoins over the last month. This systematic accumulation comes despite trading sideways over the last month. While many of the short-term traders ended up booking net losses, long-term investors managed to stack their supplies at lower prices.
On-chain data provider Santiment states there’s less likelihood of any major sell-off since the Bitcoin supply ratio at exchanges has been moving lower since the first market-wide dump three weeks ago. While institutional accumulation is a bullish outlook as of now, market analysts remain divided on the future BTC price movement from here onwards.
Last week, JPMorgan analysts noted that we are entering a potential bear market that is likely to stay for long. The JPMorgan analysis is based on Bitcoin backwardation wherein its spot market price is higher than its futures market price. The last time this happened in 2018, Bitcoin was set was a long period bear market lasting two years.