As institutional interest remains stable and selling pressure remains muted, Bitcoin reaches fresh record highs.
Due to a decrease in coin transfers from high-volume holders, exchange flows have hit a 10-year low.
On Wednesday, $218 million poured into Bitcoin spot ETFs, continuing their bullish run that has now gone four days straight.
Thursday saw fresh all-time highs for Bitcoin (BTC) exceeding $113,000, continuing its rapid ascent. As the US works to seal trade accords before higher import charges go into effect on August 1, the reappearance of tariff-triggered volatility in global markets has added fuel to the fire, and the market has rallied in response.
Investors are seeking safety in riskier assets such as Bitcoin, Ethereum (ETH), and Ripple (XRP) as the US Dollar Index (DXY), which measures the USD against six major foreign currencies, battles to recover from a multi-year low of about 96.38 reached on July 1.
The sustained criticism of Federal Reserve Chairman Jerome Powell by US President Donald Trump has cast a shadow on the Fed's autonomy and added to the general economic instability.
Using important on-chain data, fundamentals, and macro indicators like inflation patterns, investors should use a holistic approach to measure the possibility for additional price gains in Bitcoin.
1. The selling pressure around Bitcoin is still low.
Despite Bitcoin's price reaching a new all-time high on Thursday, the market is behaving in an unusual way, with sellers keeping their distance. Daily Bitcoin exchange inflows have hit a new low of 18,000 BTC, as reported by CryptoQuant. This is the lowest number seen since April 2015.
You can see that the sell-side pressure from new capital flows is waning in the chart below, which shows that the Bitcoin Exchange Inflow statistic has been consistently dropping. When Bitcoin's price initially surpassed $100,000 on November 26, inflows to exchanges soared, surpassing 81,000 BTC.
2. Exchanges get less coins from Bitcoin whales.
Based on the data provided by CryptoQuant, the group of investors holding 100 BTC or more submitted 7,000 BTC to exchanges on Thursday, down from 62,000 BTC as of November 26. Reducing selling pressure is seen by the fewer Bitcoin coins streaming into exchanges from high-volume holders.
3. The continued interest from institutions may help maintain a high price for Bitcoin.
The level of institutional interest in Bitcoin may be measured by looking at its spot Exchange Traded Funds (ETFs). According to SoSoValue, a total of twelve US-licensed spot ETFs received $770 million last week.
Approximately $515 million came in this week, indicating that the increase is on track (see graphic below). With an average of $139.4 billion in net assets, the entire cumulative net inflow volume has surpassed $50 billion.
The chief analyst of research at Bitget, Ryan Lee, has forecasted that Bitcoin's price would surge to $120,000 in the near future. If prices continue to rise, risk-on mood will likely rise as well, so traders should keep an eye on institutional interest and exchange flows to see how the market is feeling in the coming weeks.
View from the technical perspective: Bitcoin starts a new era of price discovery
The growing risk appetite and firm grip of bulls have sent Bitcoin prices soaring past $113,400 as of this writing. Thanks to a purchase signal from the Moving Average Convergence Divergence (MACD) indicator, the path of least resistance seems to go higher. Traders may choose to take a risk and wait for the blue MACD line to stay above the red signal line; this might indicate that prices will continue to rise, perhaps reaching the $115,000 or $120,000 levels.
Investors should proceed with caution, however, since new volatility might emerge and slow the upswing if the US economy experiences macroeconomic uncertainty as a result of tariff developments. Possible profit-taking and the need to gather more liquidity to power the next leg higher are two further reasons that might impede the advance.
