The Coinbase Price Premium began trading in the negative on May 2nd and according to Cryptoquant data, traditional financial investors accounted for the majority of Bitcoin sales.
Institutional investors, unlike regular investors, do not sell or buy in small amounts. They are frequently recognized by large corporations and frequently utilize Coinbase Pro to buy and sell bitcoin.
Limited exposure to Bitcoin
Currently, the financial markets appear to be trading risk-off, and these investors may want to limit their exposure to bitcoin. This is another piece of evidence that bitcoin values are mostly influenced by traditional financial industry criteria.
It’s no secret that there’s a lot of money flowing in and out of Bitcoin exchanges. However, large bitcoin sales over the week drove a lot of money out of the cryptocurrency market.
Meanwhile, bitcoin bulls are under pressure as the price of bitcoin continues to fall. While this is a significant disadvantage, it pales in comparison to the precipitous drops seen in previous bitcoin bear markets.
In response to the Federal Reserve raising rates to 0.5 percent, the on-chain market experienced strong volatility and more downside this week. Its dominance in on-chain transactions reached the second-highest point in history. The new high follows the previous year’s biggest aggregate-related volume peak in October-November.
BTC Price Finds Support at $30k
The price of bitcoin has dropped significantly below $35,000 in recent sessions. The price dropped steadily and dipped below $32,000. It has begun an upswing correction after testing the important $30,000 support. After a sharp drop, Bitcoin regained support above $30,000, while Ethereum recovered above $2,400.
However, the price is currently hovering between $32,000 and $32,200. The price could recover to $33,800 if the bulls acquire power. It could, on the other hand, begin a new slide towards the $30,000 support zone.