Bitcoin’s price has dropped below the $59,000 mark after institutional investors paused their stablecoin accumulation, a move that previously supported the cryptocurrency’s recovery. On August 12, Bitcoin’s price fell 3.9%, trading at $58,930 as of 8:03 AM UTC, down from a weekly high of $62,510.<\/p>\n\n\n\n
The recent dip in Bitcoin’s price below the critical $60,000 level appears linked to institutions halting their stablecoin buying spree. On-chain analytics platform Lookonchain highlighted this in an August 12 post on X (formerly Twitter), noting that institutions stopped receiving Tether (USDT) from the Tether Treasury and transferring it to exchanges two days prior. This pause suggests a reduction in buying pressure and investor interest, as stablecoins like USDT are often used as an entry point for institutional investments in cryptocurrency.<\/p>\n\n\n\n
Tether, the issuer of the world’s largest stablecoin, played a significant role in Bitcoin’s recent recovery. From August 5 to August 9, Tether minted over $1.3 billion worth of stablecoins, which were subsequently transferred to major cryptocurrency exchanges, including Kraken, Coinbase, OKX, and Bullish. This influx of stablecoins coincided with Bitcoin’s price hitting a five-month low of just above $49,500 on August 5, followed by a sharp 21% recovery that pushed prices above $60,000 by August 9.<\/p>\n\n\n\n
For Bitcoin to regain its upward momentum, analysts believe it needs to reclaim and stabilize above the $60,000 psychological resistance. According to popular analyst Rekt Capital, Bitcoin is making the right moves to establish $60,600 as a support level, which could pave the way for a rise toward $65,000 and beyond. However, a sustained recovery likely depends on the resumption of large institutional stablecoin inflows, which have historically provided the liquidity and buying power necessary to drive Bitcoin prices higher.<\/p>\n","protected":false},"excerpt":{"rendered":"
Bitcoin’s price has dropped below the $59,000 mark after institutional investors paused their stablecoin accumulation, a move that previously supported the cryptocurrency’s recovery. On August 12, Bitcoin’s price fell 3.9%, trading at $58,930 as of 8:03 AM UTC, down from a weekly high of $62,510. Institutional Inactivity Triggers Price Decline The recent dip in Bitcoin’s […]<\/p>\n","protected":false},"author":10,"featured_media":8901,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[257],"tags":[],"class_list":["post-10960","post","type-post","status-publish","format-standard","has-post-thumbnail","category-bitcoin"],"acf":[],"yoast_head":"\n