Bitcoin rose above $73,000 yesterday, nearly breaking its all-time high and sending a wave of optimism and euphoria across the market. This significant price movement has fueled hopes that BTC will focus on price discovery and new, uncharted territory.
Key data from CryptoQuant shows that institutional demand for Bitcoin is increasing, with notable inflows into custodial portfolios. This uptick indicates that institutional investors are accumulating more and more BTC, reinforcing strong demand that is supporting the ongoing rally.
This surge in institutional activity could be crucial in taking Bitcoin to new all-time highs. Many analysts believe that institutional demand is the missing piece needed to push BTC to sustainable, higher price levels.
As traditional financial players enter the market in greater numbers, Bitcoin’s trajectory is being closely watched, with potential ripple effects across the crypto space. The coming days could be decisive for BTC as it pushes its limits and sets the stage for a historic bull run into new price territory.
Demand for Bitcoin Whales is doubling retail sales
CryptoQuant CEO Ki Young Ju recently shared insightful data about Xwhich sheds light on the current state of Bitcoin market dynamics. According to Ju’s report, approximately 278,000 BTC have flowed into US spot ETFs over the past year, with a striking 80% of these inflows attributed to retail investors.
In contrast, a much larger 670,000 BTC has ended up in whale wallets, defined as those holding 1,000 or more BTC, excluding exchanges and mining pools. This data indicates a significant shift, with institutional demand now twice that of retail investors, underscoring the growing interest from larger players in the market.
Ju emphasizes that these whale portfolios essentially serve as supersets of custodial portfolios, further emphasizing the shift toward institutional accumulation. Because most ETF portfolios hold less than 1,000 BTC, they can be seen as representative of custodial portfolios and reflect broader market trends. However, he notes that more detailed data will be needed for deeper insights into market movements.
Despite the need for further analysis, one conclusion is clear: smart money is increasingly flowing into Bitcoin. This influx of institutional interest could provide BTC with the momentum it needs as it flirts with its all-time highs.
The coming days will be crucial for Bitcoin as this surging demand from institutional investors and whale portfolios could significantly impact price action, potentially pushing BTC into new territory and paving the way for a historic bull run.
BTC is about to breakout
Bitcoin is trading at $72,500, showing signs that it is ready to enter uncharted territory. The critical price level to watch is $73,794, the final barrier keeping BTC from breaking through to new all-time highs (ATH). Once Bitcoin surpasses this level, a significant increase is expected as fear of missing out (FOMO) enters the market, potentially sending the price to unprecedented heights.
However, it is essential to recognize the possibility of a return to the $69,000 mark. Such a pullback could be a healthy consolidation phase, allowing Bitcoin to gain momentum and fuel a subsequent rally to new highs. This pullback could allow traders to accumulate ahead of the expected upward move.
As the market approaches this pivotal moment, both bulls and bears will be keeping a close eye on the price action. If Bitcoin can maintain its current momentum and break above the $73,794 resistance level, it could mark the start of a new bullish phase, ushering in a new wave of enthusiasm among investors and traders. The next few days will be crucial in determining the direction of BTC’s price movement.
Featured image of Dall-E, chart from TradingView