For the second time in about four days, the price of Bitcoin has fallen below $46,000, raising the illusion of a longer price correction for the leading asset in the crypto space. This time the price has even left the support level of $40k as well.
According to the BTC charts on Trading View, the price of the flagship crypto has fallen to $37,127.02. The leading digital asset per market cap has fallen about 5% in a day and has experienced 20% in the previous seven days.
The downward trend of BTC has caused price correction of all assets in the crypto market as Ether (ETH) saw a 7% drop and Polkadot (DOT) 10% while the Binance coin (BNB) dropped 3% as well.
The sentiments towards the crypto market have become more soured in the past couple of days after it was made clear that Tesla Motors stopped accepting Bitcoin as a form of payment for its automobiles. Also, the news of the Department of Justice of the United States investigating Binance has been another point of concern for a possible regulatory backlash.
By the way, Avanti Digital Bank’s Caitlin Long believes that the first-ever reserve disclosure of Tether has upset the investors. In a thread posted on Twitter on Saturday, Caitlin said the probability of loss severity of Tether in default has increased because of its credit exposure. Actually, about the 2-thirds of the company’s cash and other equivalents are kept in commercial paper.
Institutional Investors are Accumulating
Despite the noise that filled the market, institutional investors are still accumulating BTC with strong assurance and irrefutable evidence that the bull market is not over yet.
The BTC Treasuries that are in charge of tracking the institutional and corporate exposure to BTC filed a report on Saturday that in the past 30 days, institutions have stockpiled about 215,000 BTC, which is about $10 billion.
The corporations and institutions that have BTC on their balance sheets have made a notable return on their investment. As reported by the Bitcoin Treasuries on Wednesday, 12th May, the value of the BTC reserve of MicroStrategy has increased by 2.3 times. The BTC stash of the Value of Square has also gone up by 2.1 times while the holdings of that of Riot Blockchain in 9 times the previous holding.
All these figures are amid the recent price correction in the market. The institutional investors are accumulating BTC for the coming days, which are believed to be better. It is noteworthy to mention that these investors are part of the reason BTC moved from $10,000 to its new $64,000 last summer.