NYDIG: Institutions seize Bitcoin plunge to build up positions

Clients of the institutional-investor–focused platform New York Digital Investment Group (NYDIG) used the sharp drop in Bitcoin’s price to build up positions in the cryptocurrency, according to NYDIG strategist Greg Sipolaro.

By popular demand. Thanks for the feedback @FossGregfoss. pic.twitter.com/bJ6D9qwxwx

— NYDIG (@NYDIG_BTC) April 19, 2021

“Our platform has been on the buyers’ side exclusively for the last 24-48 hours”, — wrote the analyst.

On Sunday, 18 April, Bitcoin’s price slid from above $61,000. At one point the price fell by 14% — below $52,000 — a drop accompanied by a surge in trading volumes.

On Monday, 19 April, prices recovered to $57,500. On 20 April, bears tried to push the price toward the recent lows.

“NYDIG clients are ready to buy any dips, indicating growing willingness to tolerate Bitcoin’s high volatility. In our view, the current decline is driven by repositioning into long positions due to high leverage, rather than a change in the fundamental backdrop,” — the expert explained.

Sipolaro noted a notable premium in Bitcoin’s price on Coinbase relative to Binance. He concluded that the main pressure was driven by Bitcoin holders from Asia.

According to CoinShares’s latest report, from 12 to 18 April inflows into crypto-asset investment products amounted to $233 million, including $108 million in Bitcoin. The figure was the highest in the last five weeks.

On 16 April, the hash rate of leading Bitcoin mining pools fell sharply amid electricity-supply problems following explosions and floods in coal mines in several Chinese provinces.

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