Key Points
- Bitcoin (BTC) price is nearing $64K due to increased demand from large-scale investors.
- Institutional investors’ demand for Bitcoin has grown significantly recently, leading to a decrease in Bitcoin supply on centralized exchanges.
The price of Bitcoin (BTC) rose by over 7% last week, reaching a significant resistance level of around $64K. This surge follows the first Federal Reserve’s rate cut since the Covid-19 pandemic. Bitcoin, valued at approximately $1.34 trillion and with an average daily trading volume of about $26.6 billion, is on the verge of a significant bullish outbreak after being stuck in a bearish consolidation for the past six months.
In the daily timeframe, the BTC price has encountered notable resistance around $64.2K, the peak of August, which aligns with the 200-day Moving Average (MA). Consequently, a sustained close above the 200-day MA and the $64K level in the coming weeks will likely trigger a rally above $71K. However, a possible dip below $60K could occur before the start of the significant parabolic rally.
Increasing Bitcoin Demand from Institutional Investors
The demand for Bitcoin among institutional investors has been growing rapidly. With a positive correlation between Bitcoin and gold in recent years, more long-term investors are betting on Bitcoin’s inevitable rally. Over the past few weeks, the gold price has surged dramatically, reaching a new all-time high of over $2,602.
On-chain data analysis reveals that long-term investors have accumulated more Bitcoins in the past two months than in the previous three years. This has led to a significant decrease in the supply of Bitcoin on centralized exchanges, from 2.7 million units in March to about $2.3 million today.
The approval of spot Bitcoin ETFs in the United States has significantly contributed to the growing demand for Bitcoin among long-term investors. In the past two weeks, US spot BTC ETF issuers, led by Fidelity’s FBTC, have accumulated more than 13k Bitcoins, valued at nearly $800 million.
Last week, the US Securities and Exchange Commission (SEC) approved the listing and trading of options on BlackRock’s IBIT, which is expected to play a significant role in its mainstream adoption.
MicroStrategy Inc recently announced the completion of an oversubscribed offering of $1 billion, leading to the purchase of an additional 7,420 Bitcoins, at approximately $61,750 per unit. As a result, MicroStrategy now holds a total of 252,220 Bitcoins, valued at over $15 billion.
Future Expectations
The Bitcoin price is anticipated to register a significant rally in the fourth quarter, potentially reaching $100k by the end of the year. However, many investors are diversifying their investments into the altcoin industry, in anticipation of the expected altseason.
Additionally, Bitcoin dominance has shown early signs of a macro reversal in the near future after forming a rising wedge over the past few months.
