• Grayscale increased its Bitcoin purchases amid growing institutional interest.
  • Bitcoin continues sliding down with $8,000 in focus.

Grayscale is buying about 2/3 of all new Bitcoin's supply, according to the research performed by a Reddit user aka parakite. The data shows that the Grayscale Bitcoin Trust increased by over 60,000 BTC from February 7 to May 17, which means that those coins will be locked for at least six months.

Those findings are confirmed by another cryptocurrency expert Kevin Rooke, who explained that Grayscale Bitcoin Trust invested nearly 30 billion in Bitcoin per week in Q1 2020, which is ten times more than a year ago. This development may indicate increased institutional interest in Bitcoin as Grayscale Trusts allow them to gain risk-free exposure to digital assets like Bitcoin and Ethereum.

Earlier the FXStreet reported that the total value of all assets under management in Grayscale hit the all-time-high at $3.8 billion. Also, Grayscale purchased nearly half of al ETH coins minted since the start of the year.

BTC/USD: Technical picture

BTC/USD is changing hands at $8,750, down nearly 5% on a day-to-day basis. The first digital asset with the current market value of $162 billion has been moving within a short-term bearish trend since the start of the day and touched the intraday low at $8,637. While the price managed to regain some ground, it is still below the psychological barrier of $9,000.

BTC/USD is trying to break weekly SMA50. If this support gives way, the sell-off may start snowballing and take the price to $8,200. Daily SMA50 and 23.6% Fibo retracement may slow down the bears. Though, once it is broken, stronger support of $8,000 will come into view. It is reinforced by daily SMA100 and SMA200 as well as $61.8%  Fibo retracement for the downside move from February 2020 high.

BTC/USD daily chart

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Can Solana price enter a 50% relief rally?

Can Solana price enter a 50% relief rally?

Solana price is in the beginnings of a quick recovery rally that could propel it back to levels that were last seen nearly two weeks ago. Two technicals back the claim for why SOL could be ready for this ascent.

More Solana News

Ethereum Price Prediction: ETH will sweep the lows at $1,500

Ethereum Price Prediction: ETH will sweep the lows at $1,500

Ethereum price displays reasons to believe in a ‘sweep the lows’ event in the coming days. Traders should approach the smart contract blockchain with caution.

More Ethereum News

Assessing the possibility of a 40% upswing for Cardano

Assessing the possibility of a 40% upswing for Cardano

Cardano price is in a spot favorable for the bulls and short-term traders as a rally might be in the works. A minor retracement will allow interested buyers an opportunity to accumulate ADA at a discount before catalyzing an explosive uptrend.

More Cardano News

Bitcoin Weekly Forecast: The last rebound before capitulation

Bitcoin Weekly Forecast: The last rebound before capitulation

Bitcoin price is showing bullish signs in the lower time frames, which can be taken advantage of by traders in the next couple of days. But looking at BTC from the highier time frames suggests that the bottom is not in yet.

More Bitcoin News

Bitcoin: The last rebound before capitulation

Bitcoin: The last rebound before capitulation

Bitcoin is showing bullish signs in the lower time frames, which can be taken advantage of by traders in the next couple of days. But looking at BTC from the higher time frames suggests that the bottom is not in yet.

Read full analysis

BTC

ETH

XRP