Are You Selling Your Bitcoin to Institutions? Top Reasons to Reconsider and Hold BTC
Over the past year, there’s been a massive shift in Bitcoin’s ownership whereinthe institutional players are increasingly accumulating BTC. this trend has been accelerated soon after the approval of spot ETFs in January 2024. On the other hand, many retail investors, tempted by short-term profits or scared by volatility, are offloading their BTC holdings. But here’s the twist: they’re selling to the very institutions that long doubted Bitcoin and are the same ones who now believe BTC is a long-term store of value.
The on-chain data suggests the institutional demand for BTC has been on the rise since the start of the second quarter. Meanwhile, the demand for the token from the retail investors has taken a major hit since the start of the year, which rose marginally as the price marked a new ATH, but dropped later. This suggests the institutions are driving the current BTC uptrend, with ETFs and corporate treasuries accumulating aggressively. Meanwhile, retail’s relative absence could mean pent-up FOMO if price breaks range, leading to sharp volatility as new buyers pile in, and also more risks of local tops when sentiment spikes.
Therefore, the retail traders are expected to stay focused on volume surges and spot demand, as some of the factors point towards a major price action very soon.
At $108K, BTC Price is Still Undervalued
The Bitcoin price still shows room to run, as suggested by the Mayer Multiple, which is an oscillator calculated as the ratio between price and the 200-day MA. It helps to determine if Bitcoin is potentially overbought, fairly priced, or undervalued. A higher multiple suggests the BTC price is trading at a premium, however, the current rates are lower, hinting the token is at the discounted rates.
