An analyst at digital assets analytics firm Arcane Research says that blue-chip investors sold-off billions of dollars worth of Bitcoin (BTC) over the last few months amid the downturn across crypto markets.
Arcane researcher Vetle Lunde says that large institutional players have unloaded a combined total of $5.4 billion in BTC since May.
“236,237 BTC.
That’s the amount of known selling of Bitcoin since May 10th by large institutions…
The 236,237 BTC number is derived from massive institutional blow-ups and other large known selling seen in the last two months.
The number does not account for other natural capitulation and hedging activity that usually occurs during crypto bear markets.”
Lunde says the selling wave started with the implosion of the Terra (LUNA) ecosystem.
“It all started with Do Kwon.
As LFG [Luna Foundation Guard] reached its initial $3 billion BTC reserves target, it took five days before TerraUSD (UST’s) peg was in shambles, and the 80,000 BTC reserve was deployed in a desperate attempt to save the peg. LUNA collapsed, leading to contagion and more sell-side pressure.
Around the same time, Tesla sold 75% of its BTC holdings. We estimate Tesla’s sales to be 29,060 BTC at an average price of $32,209.”
According to Lunde, the contagion also spread to crypto lending firms Celsius and Three Arrows Capital (3AC) a month later, causing more BTC fire sales.
“On June 12th, Celsius halted withdrawals, and rumors regarding 3AC’s meltdown murmured. Leaked court documents have revealed that 3AC owes lenders 18,193 BTC and a GBTC equivalent of 22,054 BTC.
Following the collapse, 3AC creditors hedged and de-risked exposure in attempts to fix the balance sheet holes while liquidating 3AC, causing a proper fire sale.”
The researcher adds that most of the BTC sold were forced liquidations.
“The last two months have been an obvious capitulation. Most of the selling of the 236,237 BTC mentioned in this thread has been forced selling, and it’s likely been worse than what this thread covers with underwater retail and institutions capitulating.”
