BITCOIN'S PRICE TAKES A HIT: WHAT'S BEHIND THE DECREASE IN INSTITUTIONAL INVESTMENT?

Hey there! today we're diving into the relationship between Bitcoin's price and institutional investment.

THE STABLECOIN MINTING RATIO: A KEY METRIC FOR MEASURING INSTITUTIONAL INTEREST

Have you heard of the stablecoin minting ratio? It's a crucial metric that measures the creation of new stablecoins and their issuance. In essence, it shows how much United States dollars have been exchanged for crypto. And what does this tell us? Well, when the minting ratio decreases, it indicates a decrease in institutional investment in Bitcoin.

BITCOIN'S CURRENT PRICE: IS IT A TURN-OFF FOR INSTITUTIONAL INVESTORS?

At the time of publication, Bitcoin is trading at $58,335 – down 1.89% in the past 24 hours, according to CoinMarketCap data. Now, you might be wondering what's behind this decrease in price and institutional investment. According to Markus Thielen, head of research at 10x Research, institutional investors seem less inclined to invest in Bitcoin at its current price.

THE COMING TOGETHER OF TWO TRENDS: PRICE AND INVESTMENT

Remember when Bitcoin's price fell to $49,000 back in early August? That was a different story altogether. Institutional investment surged during that period, and now it seems like those investors are taking a step back. Why? Because the current price of Bitcoin is just too low for them.

WHAT'S NEXT FOR BITCOIN?

Will we see institutional investors return to the fold once Bitcoin's price starts climbing again? Or will they stick with their cautionary approach? Only time will tell, but one thing is certain – the relationship between Bitcoin's price and institutional investment is a crucial one to keep an eye on.

[source: 10x Research, CoinMarketCap]