I’ve always thought the recent drop was because institutions ran out of money. Their cash reserves have been below historical lows for several consecutive times now. To put it simply, institutions no longer have enough capacity to keep pushing the market up. And with no cash, the direct result of having profits is likely selling off, or at the very least, passive reduction of holdings. Today, I saw the latest data from Bank of America (updated monthly), and it’s exactly as expected. Institutional cash reserves have risen from last month’s historical low of 3.2% to 3.4%. Although it’s still quite low, this is the first increase in the past seven months. You can also clearly see from the marked data that over the past month, and even the past week, institutions have been selling significantly. Only retail investors and hedge funds are buying, but the buying volume is far too small compared to the institutions’ selling. This is one of the reasons why recent price movements haven’t been great. Additionally, institutional cash reserves are still at historically low levels, so it’s highly likely that institutions are continuing to sell. This poses risks for risk assets, including BTC, unless there’s a very clear positive catalyst in the market that can boost investors’ risk appetite. If that happens, it’s likely retail investors will be left holding the bag. @bitget VIP, lower fees, crazier perks