While the Terra Luna crisis experienced last week caused one of the biggest declines in history in Bitcoin, the price fell below $ 25 thousand and fell to $ 24 thousand 200. In this period, while it was discussed whether the decline in Bitcoin and crypto money markets will continue, an important comment came from Ki Young Ju, the CEO of the on-chain data platform and analysis company CryptoQuant.
Ju made important evaluations on his Twitter account and shared the details of his work. Stating that corporate companies make purchases, not sales, Ju used the following statements:
“They buy Bitcoin through market makers”
Are institutional investors selling Bitcoin? They actually buy Bitcoin through market makers.
From Saturday, May 7 to May 10, market makers of the Gemini exchange sent approximately 84,000 BTC to Binance and broke a record.
“Binance has sold 65,000 Bitcoins”
On Sunday, May 8, Binance started selling Bitcoin on various exchanges. 65 thousand Bitcoins for 4 days; They sent it to Coinbase, Bitfinex, Kraken, OKX, and Huobi Global.
On the other hand, 87 thousand Bitcoins came to Gemini exchange for market makers on May 8.
“Dollar-Bitcoin volume hits record on Coinbase”
In the range from May 8 to May 12, Coinbase created most of the selling pressure, as there was a very serious Bitcoin inflow from Binance. Bitcoin-US dollar spot trading volume broke the record for the last 1 year on Coinbase. Coinbase premium price fell to the lowest level in the last 3 years.
As a result;
Market makers, including those working for the Luna Foundation, sent around 84,000 BTC (approximately $2.5 billion) to various exchanges last week.
We don't know exactly if the sales are over. (*The LUNA Foundation did not make the final Bitcoin sale announcement when the tweets were posted)
“They are collecting Bitcoin”
However, we can say that institutional investors are collecting Bitcoin since Coinbase digested most of the selling pressure.
'The temperature map shows the thickest walls after May 2021'
If you look at the Bitcoin-USD heatmap on Coinbase, you'll see that there have been very thick price walls since the bear season in May 2021. I think institutional investors wanted to collect Bitcoin at 30 thousand dollars, but they had to rebuild the walls at 25 thousand dollars due to the price drop due to the unexpected sales of the LUNA Foundation.
If we need to shorten the long story;
Seller: LUNA Foundation
Buyer: Institutions that usually work with Coinbase.