At the current trend, Bitcoin (BTC) seems poised to record its worst-performing quarter since the start of the 2018 persistent bear market. This quarter might also be the second-weakest quarter for the last eight years since the start of 2014.
Based on crypto data acquired from Skew data aggregator, Bitcoin is now down by over 45% for the quarter, the weakest performance since Q1 2018. At the time, it lost around 50% of its value within three months amid the fall-out from the 2017 all-time highs.
— skew (@skewdotcom) June 22, 2021
Since the beginning of 2019, Q2 2021 is now the fourth quarter that has seen a drawdown for BTC’s value, with BTC losing about 10.6% in Q1 2021, 13.6% in Q4 2019, and around 21.5% in Q3 2019.
Big Investors Offloading Bitcoin
Based on CoinShares’ June 21 ‘Digital Asset Fund Flows’ weekly report, several institutional investors have continued to sell Bitcoin exposure for the sixth consecutive week, with Bitcoin-tracking investment products encountering $89 million in outflows in the last seven days.
In general, the crypto investment products combined recorded a third consecutive week of outflows, with the investors removing around $79 million from the sector in the past week. Nevertheless, CoinShares says that multi-asset products enjoyed inflows of $10 million, followed by Polkadot that recorded $1.2 million in inflows, and Ripple with $800,000.
Institutions are not the only investors reducing their Bitcoin exposure, data acquired from Glassnode on-chain analytics provider revealed that OTC trading desks and miners are also selling their coins.
Based on Glassnode data, the Bitcoin holdings of OTC desks have plunged to their lowest since March 2021, while the miners have also been selling a lot of their mined coins in the recent weeks amid China’s crackdown on Bitcoin mining.
#Bitcoin miners have increased their distribution throughout June, as the mining industry experiences the largest migration in history.
Nevertheless, $BTC holdings on OTC desks has reached a new local low, last seen in March 2021.
— glassnode (@glassnode) June 23, 2021
However, not everyone is selling. Popular Bitcoin podcaster, Anthony Pompliano, tweeted to his almost one million followers that he is accumulating bitcoin by dollar-cost averaging regardless of what happens in the market.
Pomp said that he is “an atrocious trader who is guaranteed to lose,” and acknowledges he has “no idea of where the bitcoin price will go in the near term. However, he is not worried since he has a positive long-term outlook for the biggest cryptocurrency.
4/ The dollar cost average strategy relies on the idea that "time in the market is more important than timing the market."
This has historically been true in bitcoin. The asset has an annual compound growth rate of over 100% throughout the last decade.
— Pomp 🌪 (@APompliano) June 22, 2021
Glassnode also said that the long-term holders have increased their holdings considerably since Bitcoin started retracing from its all-time highs in April. The long-term holders do not sell their coins, instead, they accumulate more.
— Yann & Jan (@Negentropic_) June 22, 2021