Are Institutional Investors Dumping Bitcoin Amid Cryptocurrency Market Crash?

the Coinbase Price Premium started trading in the negative on May 2 and according to data from Cryptoquant, traditional financial investors accounted for the majority of bitcoin sales.

Institutional investors, unlike ordinary investors, do not sell or buy in small amounts. They are frequently recognized by large companies and frequently use Coinbase Pro for buying and selling bitcoins.

Limited bitcoin exposure

Currently, financial markets appear to be at risk, and these investors may want to limit their exposure to bitcoins. This is another proof that bitcoin values ​​are mainly influenced by the traditional criteria of the financial industry.

It’s no secret that there is a lot of money flowing in and out of bitcoin exchanges. However, strong bitcoin sales over the week took a lot of money out of the cryptocurrency market.

Meanwhile, the bulls bitcoin are under pressure as the price of bitcoin continues to fall. While this is a significant downside, it pales in comparison to the precipitous declines seen in previous bear markets in the bitcoins.

In response to the Federal Reserve raising rates to 0.5 percent, the market on chain saw high volatility and more downside this week. Its dominance in on-chain transactions has reached the second highest point in history. This new high follows the largest overall volume peak of the previous year, in October-November.

BTC price finds support at $30k.

The price of bitcoin has dropped significantly below $35,000 in recent sessions. The price steadily declined and went below $32,000. It started an upward correction after testing the important support at $30,000. After a sharp drop, bitcoin found support above $30,000, while Ethereum rallied above $2,400.

However, the price currently fluctuates between $32,000 and $32,200. The price could rally back to $33,800 if the bulls take over. It could, on the other hand, start a new slide towards the $30,000 support zone.

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