Stablecoins fall out of favor? Bitcoin plummets 4% in 24 hours, where is the market confidence?
In the past two days, those big institutions have not bought stablecoins much, and as a result, the price of Bitcoin has fallen below the number that everyone thinks is very important - $59,000. This time, Bitcoin has fallen by almost 4% in 24 hours, from last week's high of $62,500 to $58,900.
A platform called Lookonchain said, why did Bitcoin fall below the $60,000 mark? It is mainly because those big institutions suddenly stopped actively buying stablecoins. They had been buying crazily before, but now they stopped. Two days ago, they stopped taking USDT stablecoins from Tether and putting them on the exchange. What does this mean? There is not so much money in the market to buy Bitcoin, and everyone is not so interested. After all, stablecoins are the main bridge for everyone to transfer money from banks to the crypto market.
In addition, Tether printed a lot of money before, $1.3 billion, saying that the market has bottomed out and gave everyone confidence. All this money has also gone to big exchanges, such as Kraken and Coinbase. Because of this wave of operations, Bitcoin rebounded from a low of $49,500 to more than $60,000. But now, if large institutions start buying stablecoins again, Bitcoin may be able to hit the $60,000 mark again.
Let's talk about technical analysis. A well-known analyst, Rekt Capital, said that Bitcoin must return to $60,600 before it can continue to rise. He said that Bitcoin is now trying to stabilize this price so that the price can rise again and return to more than $65,000.
However, there is also some not-so-good news, that is, the money in the US Bitcoin ETFs is not much, but a lot of money is flowing out. On August 9, $89 million flowed out. This ETF can greatly push up the price of Bitcoin. When Bitcoin rose to more than $50,000, it accounted for almost three-quarters of the new investment in ETFs.
In general, now that large institutions are not buying it, the price of Bitcoin is a bit unsustainable. But we also have to wait and see what happens next. Maybe when big institutions start buying again, the price will go up.
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