OKEx Reveal That Long Holders Sold Their Bitcoin Holdings During Last Year’s Surge
Many news reports are surfacing now concerning the iconic Bitcoin and the greatest influencers of the event. When the digital asset surged past its resistance point in December, not many predicted the asset moving into a realm of new highs. The asset rose rapidly, which most exchanges attributed to the new institutional attraction Bitcoin got.
Although institutional investors had notable crypto holdings before the $20,000, most people don’t know that many Bitcoin long holders sold their assets to large scale buyers. When looking at that information, it’s clear that the biggest winners are the institutional buyers who witnessed the $40,000 climb. By the time the asset attained that value, most of them were selling off, which rapidly increased selling pressure.
OKEx’s report reveals new data
The new information gotten by OKEx, an exchange platform, established the fact that institutional monies caused the early 2021 price increase. The group shared that Paul Tudor Jones’ Bitcoin advocacy led to more trust in the digital asset for the high-net-worth buyers. Since then, an institution like MicroStrategy also created an impressive Bitcoin trend, with the firm’s volumes of BTC purchases.
The institution now has a substantial Bitcoin holding, meaning that the surge helped the group earn large profits on their position. Not surprisingly, the company already expanded its digital asset holdings by buying more assets when the crypto dipped.
The report revealed that the global pandemic contributed greatly to the search for a better asset class to withstand most nations’ economic downturn. Even when the virus broke out globally, digital assets were significantly affected, with BTC dropping to $3,000 before it made a long-term recovery.
Paul Tudor Jones, a hedge fund manager, endorsed the digital asset by also investing. The hedge fund manager educated people by informing them that they could fight the inflation rate caused by money printing when they invest in Bitcoin. While many took no notice of his assertion, many took his advice and immediately joined the crypto community.
The institutional increase since Jones’ announcement
OKEx explained that its conclusion regarding the on-chain data is that large-scale buyers followed the hedge fund manager’s advice because the platform recorded higher since the announcement. The platform concluded by adding that institutional investors did not stop buying even when 2020 came to an end. The paper confirmed the earlier reports that the monies led to the consistent surge that the space had never witnessed.
The increased demand was the drive that skyrocketed the price. Many compare the 2017 and 2020 surge. The years had a fear of missing out trend, but the only apparent difference is the dominant buyers. 2017 had most retail buyers who kept the holdings for personal reasons, while 2020 had institutional monies who bought large positions for mostly speculative reasons.
Institutional investors are strictly business-inclined people; they are mainly investing because they want to record profits. Still, the asset is higher than its previous value even with the price correction it faced with the mid-January sell-off, which led to investors changing position
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