Bitcoin experienced again another tumultuous week, with its price dropping below $30k on Tuesday.
On the same day, the market capitalization of bitcoin plummeted by over $68 billion. At the time of publication, the market’s largest crypto appeared to be recovering from its 10.6% weekly loss and was trading around the $30k price level.
BTC’s on-chain metrics did not appear to be positive at the time of writing. In fact, in the last few days, the total volume of major transactions, which indicates institutional investor interest, has declined significantly.
The press time level was last seen in December of last year, as seen in the attached chart.
Furthermore, according to IntoTheBock’s data, the total value traded in these major transactions has decreased by 61.7 percent since the recent highs recorded in early February of this year.
The on-chain activity’s unhealthiness was further demonstrated by a decline in the number of daily active addresses.
The same managed to hit new lows in December 2020. Following a peak in March and April of this year, the number of active addresses has dropped by 26% to an average of 787k during the last seven days.
Unfortunately, following China’s crackdown, Bitcoin investors now face a new problem. Grayscale, the world’s largest Bitcoin fund provider, sells shares in its most popular fund, the Grayscale Bitcoin Trust, on a regular basis (GBTC).
We may see a significant drop in the value of large transactions with the forthcoming unlock of 140,000 BTC.
Despite the general sluggishness in the Bitcoin market, the Canadian Purpose Bitcoin ETF has reaped the benefits. Since May 15, an average of 86.15 BTCs has been deposited into this trust on a daily basis. According to a recent Glassnode tweet,
“The Purpose ETF now holds 21,114 BTC.”
Investors, particularly institutional investors, have begun to see ETFs as a viable investment alternative in quest of diversification. Canada is one of the few countries in the world that have approved a BTC ETF. The situation in the United States, on the other hand, appears to be exactly the reverse at the moment.
The US Securities and Exchange Commission has delayed its approval/disapproval decision on two of the most notable applications on its table — the VanEck and Valkyrie ETFs – for the second time in two weeks.