Bitcoin Demand Questioned Amid Massive Sell-offs and Price Dips

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The leading voice in Bitcoin skepticism, Peter Schiff, recently cast doubt on the notion of increased institutional interest in the pioneering cryptocurrency. This bold contention from Schiff emerged in the wake of Friday’s Bitcoin market dip, which was marked by a 10% price downturn.

Blockchain data from Lookonchain reveals a facilitation of combined Bitcoin transactions – totaling to an astounding 17, 788 units, or approximately $1.08 billion, since mid-June. This massive transfer is attributed to the German and US governments, as well as the now-defunct crypto exchange Mt. Gox.

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A thorough inspection into the matter reflects that the German government has consistently liquidated portions of its Bitcoin holdings every day since the beginning of July. It went so far as to offload a significant 3,000 units, which carries an approximate value of $175 million, on one particular Thursday. This consistent sell-off amidst repayments to creditors by Mt. Gox led to immense selling pressure on Bitcoin. The effect: a dramatic price slide from Thursday’s $60,097 to a measly $53,971 on Friday.

In response to these developments, Schiff aired his sentiments in a post on Saturday. He theorized that the plummet in Bitcoin’s price illustrates the overestimation of institutional demand for the leading digital asset. Despite acknowledging that the market sell-off largely contributed to Bitcoin’s depreciation, Schiff adamantly underscored the lack of significant institutional demand. In his view, if this demand were as profound as projected, these institutions would be capitalizing on the available volumes of Bitcoin currently flooding the market.

Schiff’s assertions appear to challenge primary sentiments suggesting a surge in Bitcoin’s institutional demand since the roll-out of Spot Bitcoin ETFs in January. Intriguingly, Bitcoin boasted an upward trajectory in the first quarter of 2024, skyrocketing to an unprecedented peak of $73,750. This impressive ascent was concurrent with the explosive growth of the Spot Bitcoin ETF market, which recorded a whopping $10 billion trading volume in March.

On a different tangent, high-profile crypto analyst Rekt Capital holds a more bullish view on Bitcoin’s future, insinuating a potential relief rally after its recent price setback. Rekt Capital points out that, despite the market dip, Bitcoin managed to conclude Friday’s trading clocking over $56,750, allowing it to stay within the lower range area of $60,600.

The expert alluded to a potential bullish rebound, suggesting that if Bitcoin can maintain this price level, it could possibly catalyze a price resurgence shooting as high as $71,000. Presently, Bitcoin persists to trade around $58,189, exhibiting a 2.45% rise on the day. Nevertheless, the digital asset’s daily trading volume remains suppressed by a hefty 63.35%, valuing at just $20.61 billion.