Bitcoins Institutional Adoption Surges While Price Stalls Below $100,000
Bitcoin closed April on a bullish note in many aspects, but the leading cryptocurrency has yet to embark on a highly anticipated long-term price rally that could send the asset to previously unseen levels. However, a closer look at key market trends reveals that demand for the asset still favors many bullish possibilities.
In April, MicroStrategy added 15,000 more BTC to its holdings, Bitcoin hit its third-highest week ever in terms of SEC Filings, and the asset crossed over the $90,000 price level, but the long-term rally is yet to kick off.
To understand the current state of the market, it is worth noting that while Bitcoin is exiting exchanges and going into cold storage, a large portion is making its way into institutional custody through ETFs, trading infrastructure, and fund administrators, marking an upstream movement in the market.
As Bitcoin retests its previous support and continues on an upward trajectory, short-term traders and long-term holders looking to take a profit enter the market, resulting in continuous selling.
As a result, significant market buys like MicroStrategys $1.4B Bitcoin accumulation are unlikely to trigger major price rallies, as their key purchasing strategies are working hand in hand with an ever-changing market.
Digital asset infrastructure producer Swan, convinced that the Bitcoin market is about to take a non-linear path, courtesy of institutional holders, wrote the following:
Miners produce ~13,500 BTC per month.
But MicroStrategyusing cheap debt and relentless capitalhas outpaced that production for months. Theyre not just stacking. Theyre compressing Bitcoins supply curve from the outside. This is a kind of synthetic halving. Not every four yearsBut every time institutional capital hits buy.
At report time, Bitcoin is up 1.80% from the previous day and is now trading at $97,189. With the new month kicking off with leading assets adding weekly gains, the global crypto market cap, valued at $3 trillion, has increased by 1.29% over the last day.
Read more: https://zycrypto.com/bitcoins-institutional-adoption-surges-while-price-stalls-below-100000/
Text source: ZyCrypto
