Institutional investors stopped buying more stablecoins and Bitcoin’s (BTC) price fell below $59,000.
According to an Aug. 12 Lookonchain report, Bitcoin dropped 4.5% in a day after institutions stopped acquiring Tether’s USDT stablecoin and transferring it to cryptocurrency exchanges two days ago.
CoinMarketCap data shows that Bitcoin regained $60,000 after dipping down to under $58,000 earlier today and starting the 24 hours at over $60,000. This results in a 24% loss of just 0.2% as of press time despite the intraday volatility.
Tether’s issuance data
This follows Tether minting over $1.3 billion worth of stablecoins since the market touched its current bottom on Aug. 5. Lookonchain data shows that the assets were transferred from Tether’s treasury to cryptocurrency exchanges including Kraken, Coinbase, OKX, and Bullish.
The bottom reported on Aug. 5 was $49,500 and the current price is about 21% higher — with $60,000 being recovered by Aug. 9. Popular crypto technical analyst Rekt Capital suggested that Bitcoin needs to regain $60,600 as support before seeing further gains:
“Bitcoin is doing all the right things to confirm $60,600 as support to position price for a revisit of $65,000+ over time.”
Farside Investors data shows that inflows to United States-based spot Bitcoin exchange-traded funds (ETFs) have not picked up considerably. This family of derivative products saw over $89 million worth of outflows on Aug. 9 alone.
United States Bitcoin spot ETF outflows are not a new phenomenon. As reported by ReadWrite back in late June, those products saw outflows totaling $1.3 billion in just two weeks at the time. This was largely attributed to the market downturn reported at the time.
The crypto fear & greed index currently stands at 25, being a score of extreme fear. This index analyzes emotions and sentiments from a variety of sources and represents it as a single number.
Data sources include market volatility, market momentum and volume, social media post sentiment surveys, Bitcoin dominance, and Google Trends data.
The post Bitcoin price dips below $59,000 as institutions drop stablecoin buying appeared first on ReadWrite.