Fewer institutional participants are actively trading in the market due to summer vacations, leading to lower liquidity, according to Bitfinex.

"Bitcoin sell pressure has been exacerbated by fund managers being away on vacation for the for the summer, making the market very illiquid," Bitfinex analysts told The Block.

The analysts added that data shows profit taking is continuing from the long-term bitcoin holder cohort. "Even those who have held bitcoin for a period of 3-4 years, we see long-term holder cohorts continuing to remain risk-off for now and exiting spot positions. This is either because of the supply overhang from German law enforcement, Mt. Gox sales, or a general lack of conviction in the market’s strength," the analysts added.

According to Bitget chief analyst Ryan Lee, …