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Bitcoin Plunges: A Golden Opportunity For Big Investors? ๐
Bitcoin (BTC) just experienced a shocking drop, falling to $91,000 on Monday morning, causing panic among many investors.
The cause is believed to come from unfavorable macro factors, especially new tax rates from the US.
However, data from CryptoQuant shows that institutional investors are not panicking like retail investors . Instead, they are taking advantage of this opportunity to scoop up Bitcoin at a discount.
Are Big Investors Quietly Buying In?
TraderOasis , an expert at CryptoQuant , pointed out that Coinbaseโs Premium metric โ which reflects the participation of institutional investors โ remains positive.
This shows that the "whales" are taking advantage of the correction to buy , instead of dumping like most retail investors.
๐ Notable factors in the market:
๐ธ Open Interest (OI) dropped sharply , indicating that many leveraged traders were liquidated, creating selling pressure.
๐ธ Funding Rate is down , signaling widespread pessimism.
But this could be a positive sign! History shows that large sell-offs due to long liquidation are often an opportunity for institutional investors to pick up BTC ahead of a strong rally.
Is Bitcoin Preparing for a Recovery?
Mignolet , another CryptoQuant analyst , said this round of liquidations was the largest since September 2023 .
He compared the event to the FTX crash and the COVID-19 shock of 2020 , when Bitcoin fell sharply before bouncing back strongly.
๐ Potential signs of recovery:
โ Large institutions remain strong buyers , according to data from Coinbase Premium Gap.
โ The accumulation pattern of past โwhalesโ often leads to a large price increase.