Institutions not so interested in Bitcoin at $58K, metric shows

Ciaran Lyons2 hours agoInstitutions not so interested in Bitcoin at $58K, metric shows10x Research’s Markus Thielen says one stablecoin metric is key to indicating institutional interest in Bitcoin, but it’s not flashing green right now.1689 Total views6 Total sharesListen to article 0:00Markets NewsOwn this piece of crypto historyCollect this article as NFTCOINTELEGRAPH IN YOUR SOCIAL FEEDFollow ourSubscribe onThere’s one leading indicator to show whether there’s institutional interest in Bitcoin at its current price, and it’s not looking good right now, according to a crypto analyst. 

The seven-day minting ratio — a key stablecoin metric often considered one of the clearest indicators of Bitcoin (BTC) buyer activity — has significantly cooled off over the past seven days.

“Institutions that funneled fiat into crypto through Circle took advantage of the dip below $55,000 but seem less inclined to pursue the market at current levels,” 10x Research head of research Markus Thielen pointed out in his Aug. 16 report.Institutions may be holding out for further downfall

Bitcoin has been trading under $60,000 for the past 24 hours.

The indicator measures the creation of new stablecoins and their issuance, essentially showing how much United States dollars have been exchanged for crypto.

“Stablecoin inflows are a key sign if fiat dollars are being converted into crypto and then usually moved into coins like BTC or ETH,” Thielen explained to Cointelegraph.

It was a different story in early August when Bitcoin fell to $49,472,

Thielen highlighted that this metric “surged sharply” on Aug. 6, reaching $2.7 billion.

Related:Bitcoin buyers wait below $58K as Japan wipes out record stocks crash

However, it has since declined to $1.4 billion despite Bitcoin still trading below the critical $60,000 price level.

He says stablecoin Tether (USDT) “remains active,” while Circle, the issuer of USD Coin (USDC), has become “notably quiet again.”

At the time of publication, Bitcoin is trading at $58,149, down 0.35% in the past 24 hours, according to CoinMarketCap data.Bitcoin is down 4.47% over the past seven days. Source: CoinMarketCap

Meanwhile, futures traders believe the asset’s price has further downside potential, with the long-to-short ratio slightly leaning toward shorts over the past 24 hours at 50.88%, according to CoinGlass.

The Crypto Fear & Greed Index has dropped another two points, showing a “Fear” score of 27 at the time of publication.

Cointelegraph recently reported that despite the recent correction to five-month lows, Bitcoin could extend its bull rally for another year.

Citing a report published by Bybit and BlockScholes, Based on Bitcoin’s ratios during the previous cycles, the bull run will extend into the third quarter of 2025

Magazine:How Chinese traders and miners get around China’s crypto ban

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.# Bitcoin# Cryptocurrencies# Bitcoin Price# Bitcoin Analysis# Adoption# Markets# Cryptocurrency Exchange# StablecoinAdd reaction