Institutions have been selling 236,000 BTC since May


  • Tesla sold bitcoin at a very small loss, claims Arcane Research analyst Vetle Lunde
  • Most of the 236,237 bitcoins sold were related to forced sales
  • Lunde claims that BTC miners sold 4,456 BTC in May and 14,600 in June

Major institutions have sold their Bitcoin (BTC) holdings since the collapse of the Terra ecosystem in May, claimed an analyst at Arcane Research — an on-chain crypto and blockchain analytics and news platform.

Analyst Vetle Lunde also estimated in a Twitter thread last week that Tesla, led by Elon Musk, a well-known crypto company, sold 29,060 BTC in May at an average price of $32,209. During that period, the leading cryptocurrency fell from a monthly high of $40,023 to a monthly low of $27,700, according to data from CoinMarketCap.

“Tesla’s new break-even price for BTC was around $33,325, meaning Tesla sold at a slight loss,” Lunde explained.

“Most sales are related to forced sales, some are not,” Lunde said, adding, “The 236,237 BTC figure comes from massive institutional explosions and other large known sales seen over the past two months. The number does not take into account other natural capitulation and hedging activity that typically occurs during crypto bear markets.”

In subsequent Twitter posts, Lunde explained that the market sell-off began with the collapse of LUNA-UST and Luna Foundation Guard, who sold their bitcoin reserves.

“Luna collapsed, which led to contagion and more selling pressure,” he said.

The research analyst said that due to the bearish trend setting in the market, bitcoin miners have also been pressured to sell their bitcoins. These miners sold 4,456 BTC in May, Lunde claimed.

On the other hand, after the liquidation of crypto hedge fund Three Arrows Capital, crypto lending company Celsius halted withdrawals and rising inflation rates, Lunde said miners sold another 14,600 BTC in June.

Regarding the near-term movement of Bitcoin (BTC), Lunde said that macroeconomic conditions will also drive the crypto market.

“I tend to favor forced sales and contagion uncertainties for now. We will likely break in, pump and dump in unsettled conditions in the period ahead,” he added.

A representation of the virtual currency Bitcoin is seen on a motherboard in this photo taken on April 24, 2020. Photo: Reuters / Dado Ruvic

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