Institutional investors and hedge funds seemingly treated Bitcoin's latest price crash as an opportunity to buy more of the cryptocurrency at a discount. Blockchain data company, Chainalysis report cited by <a href="https://www.bnnbloomberg.ca/crypto-hedge-funds-buy-the-dip-in-bitcoin-s-week-of-reckoning-1.1606813" target="_blank" rel="nofollow noopener">Bloomberg</a> shows that institutions bought 34,000 BTC on 18th and 19th May, after selling nearly $2 billion worth of Bitcoin 51,000 BTC over the past two weeks.
<h2><strong>Crypto Hedge Funds Bought Bitcoin's Price Dip</strong></h2>
Cryptocurrency hedge funds treated the latest Bitcoin dump as nothing more than a sale.

Data from Chainalysis shows that not only institutional players took the opportunity to <a href="https://www.cryptoknowmics.com/news/withdraw-coinbase-bitcoins-in-large-quantities-continued-institutional-buying-after-the-strong-dip/">buy the dip</a>, they also helped in preventing the free fall in price to rebound most of the losses within 24-hours of the crash.

Ahead of the market crash, Genesis Global Trading sent out a note to its counterparties stating that macro funds began buying the dip at the $35,000 level.

The firm cited the massive Bitcoin sell-off over the past 48 hours as <i>“largely driven by forced liquidations on derivatives venues,”</i> adding that the extreme liquidations that sent the price of the cryptocurrency crashing have been quickly bought in past instances.
<h2><strong>Turbulent Times in Crypto Market</strong></h2>
The cryptocurrency market over the past couple of days saw nearly $500 billion getting wiped out of the market cap as major cryptocurrencies fell over 30%.

On 19th May, the price of Bitcoin fell to $30,000 levels while Ether's price fell below $2,500. Both the cryptocurrencies seemingly lost almost 50% of their entire market cap from the top.

The market crash brought back March 2020 mayhem when the price of Bitcoin and altcoins fell over 50% in a single day. The latest price dump also led to the <a href="https://www.cryptoknowmics.com/news/crypto-market-correction-lucidates-over-300000-traders-address-shifts-9055-btc/">liquidation</a> of over $9 billion worth of leveraged positions as well.

Despite the bloodbath, the market has bounced back strongly with BTC jumping back above $42,000 while Ether moving towards $3,000.

The price crash also brought a perfect investment opportunity for hedge funds and institutional investors making the best out of buying the leading cryptocurrency at a cheaper price.

Hedge Funds and Institutional Buyers Bought Bitcoin’s Latest Dip: Report

Institutional investors and hedge funds seemingly treated Bitcoin's latest price crash as an opportunity to buy more of the cryptocurrency at a discount.

Jafrin is a cryptocurrency journalist/researcher fascinated by the world of decentralization. She is hopeful towards blockchain’s innovation and its potential to reshape the world for good. Currently, she is bringing out the best of cryptosphere via covering the latest ins and outs of the blockchain space.

Hedge Funds and Institutional Buyers Bought Bitcoin’s Latest Dip: Report

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