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Institutional investors are accelerating Bitcoin acquisitions, creating a tighter supply dynamic in the market. Major firms including BlackRock, Fidelity, Bitwise, and Grayscale are actively purchasing Bitcoin. On-chain data shows that approximately $388 million in Coinbase loans may be liquidated if Bitcoin drops 30%.
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Total liquidatable loans across Morpho users could reach about $515 million under the same price scenario. Arthur Hayes, co-founder of BitMEX, attributed the decline to institutional hedging linked to BlackRock’s iShares Bitcoin Trust, suggesting further downward pressure.
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Traders and risk managers should monitor loan liquidations and credit exposure as institutions recalibrate demand. The evolving balance between supply constraints and hedging activity could influence short-term volatility.
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