The crypto-market is finally at the end of much-needed relief after an intense sell-out period, or rather months. In the last 24 hours, Ethereum [ETH][1] rose by 14%, Bitcoin [BTC][2] rose by 11%, and the liquidation amount did fall to around $315 million.
This uptick comes after a significant loss period, as is the case here…
Rising from the ashes?
The Purpose Bitcoin ETF[3], launched in February 2021, has seen consistent inflows over the years. However, given the market bloodshed, the ETF shed more than 50% of its holdings in a single day. Canada’s Purpose Bitcoin (BTC) ETF sold a staggering 24,500 BTC by Friday’s close i.e. they sold 50% of their holdings in a single day. That is a lot of BTC to sell in a single day.
Source: Glassnode
This dent is visible in the graph attached herein, although it did manage to rise again given the Bitcoin market’s ‘recovery.’ The inflows seem to align with a broader short-term tendency of institutional buyers to invest in crypto again.
While it may shed light on an “improving scenario,” Arthur Hayes[4], had a different narrative to share with the community.
Bitcoin’s price dropped to a low of close to $17,600 over the last 72 hours.
“Down almost 20% from Friday on good volume. Smells like a forced seller triggered a run on stops,” he added.
Ergo, despite the small hike in price, this could raise red flags across the crypto-market. Furthermore, Hayes expects several more episodes of forced selling, given the crypto-lending market fiasco within the crypto-market. He opined,[6]
“After the sellers dumped their bags, the mrkt quickly rallied on low volume. Given the poor state of risk mgmt by cryptocurrency lenders
