As the new week began, Bitcoin (BTC), the leading cryptocurrency, experienced a drop, potentially influenced by critical data from the US. However, the decline may also be attributed to institutional investors.
Recent data indicates that institutions have ceased purchasing USDT from the Tether Treasury and depositing it into exchanges.
According to on-chain data platform Lookonchain, institutional investors halted their USDT purchases from the Tether Treasury and stopped depositing them onto cryptocurrency exchanges two days ago.
Analysts suggest that this slowdown in buying, particularly by institutions that previously saw declines as buying opportunities, is a key factor in the current market downturn.
It’s worth noting that last week, major crypto market maker Cumberland deposited 95 million USDT into centralized exchanges (CEXs) such as Coinbase, Kraken, and OKX.
In addition to Cumberland, other large firms have withdrawn hundreds of millions of dollars worth of USDT from Tether.
Alongside the reduced purchasing activity by institutional investors, there has also been an increase in transfers to exchanges.
Galaxy Digital, for example, recently deposited $16.14 million worth of Bitcoin into Binance and OKX.
On-chain analyst The Data Nerd reported that Galaxy Digital transferred 276 BTC, valued at $16.14 million, to cryptocurrency exchanges Binance and OKX.
Despite these movements, Galaxy Digital still holds 3,574 BTC, equivalent to $210.34 million, in its wallet. #bitcoin☀️ #Bitcoin❗ #BTC☀ #Cryptocurrencies #BTC500K
