Bitcoin fell to a session low of $45,127.01, according to TradingView, before staging a modest recovery to around $45,400. The largest cryptocurrency by market capitalization is down 5% on the day and over 20% in the last seven days.
Market sentiment towards cryptocurrencies has soured in recent days after it was revealed that Tesla is no longer accepting Bitcoin payments for its automobiles. Headlines about a possible investigation into Binance by the United States Justice Department have also raised concerns about a potential regulatory backlash.
Meanwhile, Caitlin Long of Avanti digital bank believes that Tether’s first-ever reserve disclosure has spooked investors. In a Twitter thread posted on Saturday, Long said Tether’s “probability of default [and] loss severity in default just went up” because of its credit exposure. Namely, almost two-thirds of the company’s cash and cash equivalents are stored in commercial paper.
Institutions are accumulating
Despite all the noise in the market today, institutions are accumulating Bitcoin with ever-growing conviction, offering compelling evidence that the bull market is far from over.
Bitcoin Treasuries, which tracks corporate and institutional exposure to BTC, reported Saturday that institutions have accumulated 215,000 Bitcoin in the past 30 days. That’s equivalent to roughly $10 billion.
Institutions have accumulated 215,000