In the last week the Bitcoin price action has experienced increasing volatility, however that turbulence has apparently been somewhat related to the stablecoin buying frenzy and its direct influence on the Bitcoin price action.
In this regard and in correspondence with information disclosed by Zoltan Vardai, Bitcoin's share fell below USD 59,000 and the price drop is probably due to institutions stopping their stablecoin buying frenzy.
According to Vardai, "Institutional investors have stopped their accumulation of stablecoins over the past two days, causing the bitcoin price to fall below a key psychological level."
The truth is, "The lack of institutional stablecoin inflows to cryptoexchanges may signal a lack of buying pressure and investor appetite for the underlying asset, as stablecoins are the main on-ramp from the fiat world into the crypto space used by investors"
To wit, "Tether issues the world's largest stablecoin, Tether, and has minted stablecoins worth more than USD 1.3 billion since the market low on August 5 through August 9"
SOURCES CONSULTED
Cointelegraph. Bitcoin price drops below $59K as institutions stop buying stablecoins. Link
OBSERVATION:
The cover image does not belong to the author: @lupafilotaxia, the image was taken from: Cointelegraph
