Over the past month, the price of bitcoin has been subject to a lot of turbulence, culminating in a total loss of 3.09% according to bitcoin/” target=”_blank” rel=”noopener nofollow”>data from CoinMarketCap. It is noteworthy that despite intermittent waves of a price rally, the cryptocurrency market leader failed to regain the $65,000 price zone throughout August. However,Amidst this bear market, institutional investors have taken the opportunity to strengthen their position in the bitcoin market.
bitcoin OTC reserves rise to record high since 2021
In a bitcoin-OTC-reserves-grow-at-fastest-pace-since-2021″ target=”_blank” rel=”noopener nofollow”>Quick post At CryptoQuant, an analyst with the username caueconomy reported on an observation regarding the buying behavior of bitcoin institutional investors. By monitoring the transactions of bitcoin OTC (over-the-counter) addresses, this analyst confirmed that these parties have been rapidly increasing their holdings in recent weeks.
Institutional investors often prefer OTC trading to exchanges for high-volume transactions, as it allows them to buy or sell large amounts of cryptocurrencies without the market price moving significantly. According to caueconomy, these investors have purchased 57,000 btc, valued at $3.65 billion, in the past 30 days, representing a scale of buying last seen in 2021.
The analyst notes that this buying activity is unusual as high levels of institutional OTC trading typically occur during periods of high volatility in contrast to the low price volatility that has largely been present in the btc market over the past few weeks.
However, caueconomy posits that this large-scale acquisition may be aimed at planned token sales in cases of an “adverse” market reaction. Conversely, the purchase of large amounts of an asset by whales and institutional investors, especially during market lows, represents a bullish signal of confidence in future profitability.
Most recently, the leading cryptocurrency saw a price surge on Friday after U.S. Federal Reserve Chairman Jerome Powell stated that interest rate cuts are coming in the coming months. bitcoin rose 4.84% to reach a peak of $64,879, just below the prominent $65,000 resistance zone.
Commenting on this development, Uto Shinohara, financial expert and CEO of an asset investment firm, Mesirow, x.com/WuBlockchain/status/1826995844635345364″ target=”_blank” rel=”noopener nofollow”>provided a 30 basis point rate cut in September and a full 95 to 100 basis point rate cut by the end of 2024. If such predictions prove true, bitcoin and other cryptocurrencies are expected to surge in demand in the coming months, which could translate into significant gains for institutional investors.
btc Price Summary
According to data from CoinMarketCap, bitcoin is trading at $63,905 with a price increase of 5.38% over the past 24 hours. At the same time, the asset's daily trading volume has increased by 64.53% and is valued at $42.94 billion.
Featured image from Coinformania, chart from Tradingview
