The world’s largest cryptocurrency Bitcoin (BTC) continues to face the heat of the sell-off in the U.S. equity market. With Dow Jones (INDEXDJX: .DJI) crashing more than 2.7% on Friday, the Bitcoin (BTC) price is trading 2% down at $38,639 levels with a market cap of $734 billion.
Investors are skeptical that if the sell-off continues in the U.S. equity market, we can see BTC correct up to $30,000. However, popular market analyst Willy Woo notes that institutional players have been scooping the supplies at every drop. He predicts this based on the rising illiquid supply of Bitcoins at the exchanges. Woo notes:
“Bitcoin price is sideways because of Wall St is selling futures contract in a macro risk-off trade. Meanwhile, institutional money is scooping spot BTC at peak rates and moving to cold storage. It’s times like these I remember the Q4 2020 supply shock squeeze”.
Additionally, market analyst Will Woo further writes: “BTC price holding up well while equities tank and USD Index moons is testament to the unprecedented spot buying happening right now. In other words: Investors already see BTC as a safehaven, it will take time for price to reflect. Wait for the futures sells to run out of ammo”.
Institutional players have been recently showing greater interest in Bitcoin as the asset class matures. Some of the top Wall Street banking institutions have started offering Bitcoin-related products and services amid the rising client demand.
In the past, we have seen billionaire investors like Ray Dalio talking about Bitcoin and why should allocate a small portion of their portfolio to BTC as a hedge. On Thursday, April 28, Wall Street giant Goldman Sachs started offering Bitcoin-backed loans to clients. This makes it the first major U.S. bank to offer Bitcoin collateralized loans to clients.
A spokeswoman at Goldman Sachs told Bloomberg: The deal was interesting to Goldman because of its structure and 24-hour risk management.
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