Large Institutions Have Sold 236K BTC Since Terra’s Implosion in May


According to an expert at Arcane Research, Tesla only lost a little amount of money in the Bitcoin crash since 75% of its Bitcoins were sold at $32,209.

Vetle Lunde, an analyst at Arcane Research, disclosed in a recent Twitter thread the number of Bitcoin institutional investors had liquidated since Terra’s devastation began, therefore depressing the whole cryptocurrency market. In May, Tesla sold 29,060 Bitcoins at an average price of $32,209.

Lunde believes that the enormous institutional blow-ups of the previous two months began on May 10th, when Do Kown sold over 80,000 BTC to protect the UST peg, when Terra’s price collapsed.

Since then, the infection has rapidly spread across the sector and increased the selling pressure, resulting in the sale of 236,237 BTC by significant institutions. Lunde said that “the amount does not account for other natural capitulation and hedging action that often happens in negative markets for cryptocurrencies.”

In response to deteriorating market conditions, publicly listed miners were compelled to liquidate their Bitcoin holdings, selling a total of 4,456 BTC throughout the month. Meanwhile, according to Lunde’s estimation, Tesla liquidated 75% of its BTC holdings, which equates to 29,060 BTC. Tesla still possesses 9,686 BTC as of February 1, 2021, down from 43,053.

Since Tesla sold 10 percent of its earlier holdings to “test liquidity” during the first quarter of 2021, when Bitcoin surged, the EV giant’s new break-even price of BTC decreased from $34,841 to about $33,500. As a result, Tesla sustained a minor loss while performing large sales in May this year.

Also Read: The Merge is Ethereum’s opportunity to take over Bitcoin, researcher claims

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