The Bitcoin (BTC) price fell below $ 46,000 on Sunday for the second time in four days, increasing the likelihood of a deeper short-term correction in the underlying digital currency.
Bitcoin fell to an increase of $ 45,127.01, and then recovered slightly to $ 45,400, according to TradingView. The largest cryptocurrency by market value has fallen 5% in one day and more than 20% in the last seven days.
The Bitcoin price is holding back short-term fluctuations. Source: TradingView
Sales in BTC contributed to a market adjustment for cryptocurrencies: Ethereum (ETH) decreased 7%, Polkadot (DOT) decreased 10%, and Binance Coin (BNB) decreased 3%.
Digital currency trading intensified on Sunday as the total market value of all assets fell from $ 2.3 trillion to $ 2.1 trillion. Source: Coin360
The market mood for cryptocurrencies has worsened in recent days after it became known that Tesla no longer accepts Bitcoin payments for its cars. Headlines about a possible investigation of Binance by the US Department of Justice have raised concerns about a possible setback by regulators.
Meanwhile, Avanti Digital Bank’s Caitlin Long believes that the first revelation of Tether’s reserve has triggered investor concerns. In a Twitter post on Saturday, Long said that “the likelihood of default [and] the severity of a default has just increased” because of her credit risk. In particular, approximately two-thirds of the company’s cash and cash equivalents are held on a certificate.
Institutions are piling up
Despite all the tension in the market today, institutions are gathering bitcoin with increasing confidence, providing convincing evidence that the beef market is far from over.
Bitcoin bonds, which track the corporate and institutional impact of Bitcoin, reported on Saturday that institutions have amassed 215,000 bitcoins over the past 30 days. This is about $ 10 billion.
Companies that have Bitcoin on the balance sheet have a high return. As reported by Bitcoin Treasures on May 12, MicroStrategy Corporation’s BTC reserve has grown 2.3 times. The value of bitcoins in Square has increased 2.1 times. Riot Blockchain shares are up 9 times. These figures have fallen somewhat during the recent market correction.
Institutions have flooded bitcoin most of the year. The so-called smart investors are one of the main reasons why BTC climbed from $ 10,000 last year to the highest of $ 64,000 in April.