Bitfinex, one of the major cryptocurrency exchanges, cited the lack of institutional buying during the holiday period as the reason for Bitcoin’s price decline. Exchange analysts wrote that the long-term investor group was also taking profits in Bitcoin and that, among other things, the selling pressure was exacerbated by the “summer period”:

“Selling pressure is getting heavier”

Analysts said Mt. Gox and German government sales, as well as institutional buying, dried up liquidity and even risk-averse long-term investors were selling:

“Even those who have held bitcoin for a period of 3-4 years, we see long-term holder cohorts continuing to remain risk-off for now and exiting spot positions. This is either because of the supply overhang from German law enforcement, Mt. Gox sales, or a general lack of conviction in the market’s strength,”

“Miners now want to keep it”

Ryan Lee, one of the analysts of the stock exchange, said the following, referring to miner sales and movements:

“Miners are now more inclined to hold their bitcoin rather than sell it, reducing the potential selling pressure from miners,”

Futures show “bear”

On the other hand, it is seen that the “put and call”, that is, the “sell-buy” ratio in the 18 thousand Bitcoin futures position, which will expire today, has increased to 0.65. This shows that futures traders are in a bearish expectation. Despite this, it is noteworthy that most of the open positions are in the direction of buying.

At the time of writing, Bitcoin is trading around $56,400.