Bitcoin price has dropped more than 1% in the past 24 hours to below the key psychological level of $60,000.
Analytics platform Lookonchain explains that the reason for the BTC price drop is because institutions have ended the stablecoin buying frenzy:
“Institutions appear to have paused buying and BTC price dropped 4.5% today! We noticed that institutions stopped receiving USDT from Tether Treasury and transferring it to exchanges 2 days ago.”
The lack of institutional stablecoin inflows to crypto exchanges could signal a lack of buying pressure and investor demand for the underlying asset, as stablecoins are the main channel connecting investors using fiat to the crypto world.
Tether is the world's largest stablecoin issuer USDT and has minted over $1.3 billion from the market Dip on August 5 to August 9. These Token have been transferred to some of the most popular centralized cryptocurrency exchanges, including Kraken, Coinbase, OKX , and Bullish.
Bitcoin price Dip at a five-month low above $49,500 on August 5 and recovered more than 21% to above $60,000 on August 9.
Technically, Bitcoin price needs to reclaim $60,600 to gain further upside momentum, according to popular analyst Rekt Capital.
“Bitcoin needs to confirm support at $60,600 to retest $65,000 and above over time.”
BTC/USD 1-day chart. Source: Rekt Capital
However, inflows into Bitcoin ETFs in the United States remain low as they saw net outflows worth over $89 million on August 9.
Source: Farside Investors
ETF inflows can contribute significantly to the rise in cryptocurrency prices. For Bitcoin, ETFs accounted for about 75% of new investment in the cryptocurrency on February 15 when it crossed the $50,000 mark.
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Itadori
According to Cointelegraph
