Institutional Interest in Bitcoin Wanes as Market Caution Grows; Minting Ratio Drops to $1.4B
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Bitcoin (BTC), the world’s oldest and most valuable cryptocurrency, initially surged to $59,800 but struggled to maintain that level, eventually falling below $56,630.
The global cryptocurrency market cap is $2.06 trillion, reflecting a 24-hour decline of 0.93 percent. Bitcoin’s recent pullback to the $58,000 range followed the release of US Consumer Price Index (CPI) data, which revealed a price rebound in July as expected.
This development has dampened expectations for a significant rate cut by the Federal Reserve in the upcoming month.
JUST IN: #Bitcoin just fell below $57K. pic.twitter.com/R4VJAizzq1
Additionally, ongoing geopolitical tensions between Iran and Israel have added further pressure to the market. The crypto derivatives sector also experienced substantial liquidations over the past day, contributing to the overall market volatility.
It is worth noting that institutional interest in Bitcoin may be waning at its current price, according to a crypto analyst.
The 7-day minting ratio, which tracks the creation of new stablecoins and their conversion into crypto, has dropped significantly from $2.7 billion earlier in August to $1.4 billion now.
This decline suggests that institutions, which had been actively investing when Bitcoin fell below $55,000, are now less interested. Currently, Bitcoin is trading around $58,149, showing a slight drop in the past 24 hours.
Additionally, the Crypto Fear & Greed Index has fallen to a “Fear” level of 27, indicating market caution.
Institutions not so interested in Bitcoin at $58K,
Read more on cryptonews.com
