Bitcoin price drops below $59K as institutions stop buying stablecoins đ
Institutional investors have halted their accumulation of stablecoins over the past two days, causing Bitcoinâs price to drop below a key psychological level. During the past 24 hours, the $BTC price fell 3.9% to trade at $58,930 as of 08:03 am UTC on Aug. 12, falling from a weekly high of $62,510. The drop below the $60,000 mark was likely caused by institutions stopping their stablecoin buying frenzy, according to an Aug. 12 X post from onchain analytics platform Lookonchain:
âInstitutions seem to have temporarily stopped buying, and the price of $BTC dropped 4.5% today! We noticed that institutions stopped receiving $USDT from #TetherTreasury and transferring it to exchanges 2 days ago.â
The lack of institutional stablecoin inflows to crypto exchanges can signal a lack of buying pressure and investor appetite for the underlying asset, as stablecoins are the main on-ramp from the fiat to the crypto world used by investors.
