Greg Cipolaro, head of research at New York Digital Investing Group (NYDIG), said in an email to the investor’s subscribers yesterday that institutional investors saw the recent fall in prices as an opportunity to buy.
to the the report CoinDesk, Kipolaro’s remarks came after the price of Bitcoin fell from a high of $ 64,000 to $ 51,541. Bitcoin is currently traded in the $ 55,000 range. He also noted the increase in bitcoin purchases by institutional investors.
Bitcoin prices are still 89 percent higher than at the beginning of this year. Coarse-grained investors, on the other hand, see Bitcoin as a safe haven for investment against inflation; US government support packages to protect its citizens from the financial consequences of the Corona virus and similar actions by other central banks have devalued Fiat currencies.
In another part of his email, Kipolaro wrote:
Institutional investors at such times have a “buy on the floor” mentality, which could indicate that they are now better able to cope with bitcoin fluctuations.
We think the root of the recent increase in sales pressure was that investors did so with other factors, rather than taking positions with fundamental news; Simply put, traders overused leverage in long positions, making liquidation inevitable.
Kipolaro also pointed to the high price difference of Bitcoin in the Coin Base and Bainance exchange and wrote:
The difference in the price of instant Bitcoin transactions in Coin Base and Baines, which is usually very small, reached 3%; These data show us that the sales pressure was more from Asia than from North America.