Bitcoin Boom: Institutions Are Channeling $86 Billion into the Crypto Market.
According to CryptoQuant CEO Ki Young Ju, institutional investors have poured a staggering $86 billion into the Bitcoin market over the past six months, indicating that mainstream adoption of cryptocurrencies is increasing.
According to the founder of CryptoQuant, this indicator shows that the current cycle may differ from previous ones.
Bitcoin, the first and most popular cryptocurrency, has seen a tremendous increase in value, with an annual increase of 151%.
The Bitcoin boom marks a significant recovery from 2022, when values collapsed. The outlook improved greatly in 2023, and as of March 14, 2024, Bitcoin reached an all-time high of $73,737. The approval of exchange-traded funds (ETFs) that own Bitcoin in the United States has been one of the key drivers of Bitcoin prices this year.
The accumulation of whales and institutional investors continues: According to cryptocurrency analyst Ali, Bitcoin whales purchased more than 100,000 BTC worth $ 7 billion last week.
BTC price action
The Bitcoin market, although currently consolidating, has taken a bit of a break from the strong uptrend of the last two weeks. Bitcoin dropped to a low of $60,770 before rising to $70,000. According to Glassnode, this price movement is extremely similar to the last 2018-2021 cycle.
The overall Bitcoin market bears some similarities to previous ATH booms, particularly with distribution pressure from the Long-Term Holders group.
Various on-chain indicators showed an increase in profit-taking activity, with more than $2.6 billion in profits being made as the market approached resistance.
Metrics such as MVRV and AVIV Ratio were +1 standard deviation from their long-term averages. Past examples have historically been interesting points where the market encountered resistance and some investors began to take profits and chips off the table.
