Over the course of this year, Bitcoin‘s value has shown significant fluctuations, sending out conflicting messages regarding its performance. Remarkably, institutional investors have kept faith in the asset even amidst recent market adjustments.
As per a recent analysis posted by caueconomy on QuickTake and discussed by CryptoQuant contributor, it appears that larger investors are deliberately amassing Bitcoin, implying a sustained belief in the cryptocurrency’s future price trend.
Bitcoin Institutional Accumulation Signals Market Confidence
On the 21st of December last year, investors unloaded roughly 79,000 Bitcoins over a span of one week, leading to a substantial market drop of approximately 15%. This massive sell-off signaled a peak and was succeeded by a period of price stabilization.
As a researcher, I found that rather than leaving the market during the dip, significant investors strategically employed Time-Weighted Average Price (TWAP) strategies to progressively acquire Bitcoin, just under the $95,000 threshold. This method allowed them to accumulate Bitcoin steadily without making a massive immediate investment.
For about a month now, large-scale investors have been increasing their Bitcoin holdings by approximately 34,000 coins. This accumulation has contributed to a level of demand that is helping Bitcoin bounce back from its recent downturn.
It’s worth noting that this pattern has remained steady since June 2023, holding true even during times when institutional investors were adjusting their holdings.
Even though the appetite for investing among individual retail investors is at its lowest point in five years, institutional investors continue to show significant interest. This disparity in investment trends between retail and institutional players hints at different market behaviors. The consistent buildup of investments by institutions implies that these large investors are predicting long-term worth from their investments.
Increased Selling Pressure On Binance Sparks Market Concern
Although amassing Bitcoin by institutions has contributed somewhat to its value, a CryptoQuant collaborator named Darkfost pointed out an increasing trend of selling activity on Binance, one of the globe’s leading cryptocurrency trading platforms.
In an independent examination, Darkfost observed a substantial spike in daily Trading Volume per Hour that subsequently plunged dramatically and reached its highest negative value of $-325 million in 2025 â the most significant dip during that year.
The increased demand for buying at this time was in line with the publication of negative economic indicators from the ISM PMI and JOLTS Job Openings reports. These findings had a ripple effect on investor sentiment regarding risky assets like stocks and cryptocurrencies.
The influx of data prompted a flurry of sell commands, leading to increased downward force on Bitcoin’s value. Darksfost proposed this rephrasing.
Keeping an eye on this key metric, alongside others, will be crucial for figuring out if market-wide fear is becoming a persistent trend in the long run, or simply a short-lived reaction.
Regardless of the heightened selling efforts, Bitcoin has managed to hold its ground above the $95,000 threshold. Currently, it’s being traded at $95,586, representing a decrease of about 5.2% over the last day. Notably, this price is still well beneath Bitcoin’s record high of $108,000, which was achieved last month, indicating a drop of approximately 11.8% from its peak value.
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2025-01-09 13:34