Bitcoin, the first and largest cryptocurrency in the world, is still facing harsh conditions in the United States equity market as investors keep selling off in massive quantities. Data from Dow Jones Index shows that BTC on Friday crashed down to about 2.7%. It also reported that BTC price has gone down by about 2% as it was trading at around $38,639 with a market capitalization of $734 billion at the time of press.

Massive Sell Offs As Bitcoin Price Keep Downtrending

Consequently, the situation has spiked up doubts in the heart of many crypto investors as they  are worried that BTC could rally down to $30, 000 if it continues to sell off at the equity market of the United States. Willy Woo, a famous crypto analyst, said that he believed it is because of the rise in illiquid supply of BTC at exchanges that caused the institutional investors to continue to acquire BTC in large quantities as the sell off continues.

He noted that the prices of BTC seems to be dropping because Wall Street continues their engagement in the macro risk-off trade by selling off futures deals. He added that whereas in the midst of the sell offs, institutional investors are using the spot option to scoop in more BTC at top rate and then storing them in their wallets. He said an event like this reminds him of the supply shock squeeze that happened in the last quarter of 2020.

Furthermore, Will Woo added that BTC price is doing quite well at the midst of the massive sell offs by equities and massive purchases by institutional investors. He continued that the only logical reason behind the recent event is that investors consider BTC as a trustworthy class asset. He concluded that after equities emptied their thanks and future sales ran out, that is when the price of BTC will reflect the consequences of the current events. 

Institutions Keep Buying Bitcoin

As Bitcoin continues to mature and fit into the description of an asset class, numerous institutional investors continue to add it to their portfolios in large quantities. To satiate the fast rising demands from clients, several leading Wall Street financial firms have started to provide Bitcoin-based services and products.

Previously, Ray Dalio and other popular billionaire investors used to advocate and encourage investors to consider using BTC as a hedge fund as part of their investment portfolio. Recently, one of the top banks of Wall Street, Goldman Sachs bagan to offer loans backed by Bitcoin to its customers thereby becoming the first major bank in the U. S. to give BTC collateralized loans. In an interview with Bloomberg, a Goldman Sachs spokesperson said the firm told interest in the deal because of its pattern and 24-hour risk management.

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