- Public Bitcoin miners sold 4,456 BTC in May alone.
- 3AC owes lenders 18,193 BTC and the equivalent of 22,054 BTC in GBTC.
Since May 10, the largest institutions have sold up to 236,237 Bitcoin (BTC), worth $5.541 billion at the time of writing, some often as a result of forced selling. This selling was placed during the last two-month period of market stress.
Vetle Lunde, an analyst at Arcane Research, explained how and when many institutional Bitcoin holders started dumping their holdings in a post on Twitter. He said that It all started with Do Kwon and LFG.
The Liquidation Overflow
LFG took 5 days to meet its initial $3 billion BTC reserve target, at which point the 80,000 BTC reserve was used in a last-ditch effort to keep the peg in position. As a result of the collapses of Luna and UST, there was further sell-side pressure in the months that followed.
Public Bitcoin miners sold 4,456 BTC in May alone. They had together sold more than 100% of their production that month, up significantly from 25% to 40%. Tesla also reduced its holdings by around 75% in the same period, according to Arcane research Tesla sold 29,060 BTC for an average price of $32,209.
Several prominent exchanges went bankrupt as a result of the correlation, which caused prices to fall after Luna’s demise. On June 12th, Celsius stopped withdrawals and the 3AC started meltdown. According to leaked court documents, 3AC owes lenders 18,193 BTC and the equivalent of 22,054 BTC in GBTC.
Then, in the middle of the 3AC and Celsius crises, the Canadian Purpose ETF underwent a large redemption of 24,510 BTC. The cryptocurrency market was barely recovering prior to the market collapse.