Yesterday, Bitcoin soared above $73,000, near a new all-time high, and sparked a wave of optimism and euphoria across the market. This significant price movement increased expectations for BTC to move into price discovery and new uncharted territory.
Key data from CryptoQuant reveals that institutional demand for Bitcoin is on the rise, with significant inflows into custodial wallets. This rally shows that institutional investors are increasingly accumulating BTC, reinforcing the strong demand supporting the ongoing rally.
This increase in institutional investor activity could be crucial in pushing Bitcoin to new all-time highs. Many analysts believe that institutional demand is missing as a necessary ingredient to push BTC to sustained and higher price levels.
As more traditional financial players enter the market, there is the possibility that it will have a ripple effect on the entire virtual currency field, and developments in Bitcoin are attracting attention. The next few days could be decisive as BTC tests its limits, potentially paving the way for a historic bull run into new price territory.
Bitcoin whale demand doubles retail
CryptoQuant CEO Ki Young Ju recently shared some insightful data on X, revealing the current state of Bitcoin market dynamics. According to Ju’s report, approximately 278,000 BTC has flowed into U.S. spot ETFs over the past year, with a staggering 80% of this inflow coming from retail investors.
In contrast, a much larger 670,000 BTC moved into whale wallets, defined as those holding 1,000 BTC or more, excluding exchanges and mining pools. This data shows a significant shift, with demand from institutional investors now double that of retail investors, highlighting the growing interest from larger companies in the market.
278,000 BTC inflowed into US Spot ETF and 670,000 BTC into Whale Wallet due to Bitcoin’s 1-year fluctuation | Source: Ki Young-joo of X
Ju emphasized that these whale wallets essentially function as a superset of custodial wallets, further emphasizing the shift towards institutional accumulation. Most ETF wallets hold less than 1,000 BTC, so they can be considered representative of custodial wallets that reflect broader market trends. However, he notes that more detailed data will be needed to gain deeper insight into market movements.
Despite the need for further analysis, the conclusion is clear. That means smart money is increasingly flocking to Bitcoin. This influx of institutional interest could provide the momentum BTC needs as it climbs to new all-time highs.
Bitcoin will continue to grow in the coming days as rising demand from institutional investors and whale wallets could have a major impact on price trends, pushing BTC into new territory and setting the stage for a historic bull market. becomes extremely important.
BTC is about to breakout
Bitcoin is trading at $72,500 and is showing signs of being ready to venture into uncharted territory. The key price level to watch is $73,794, which is the last barrier preventing BTC from making a new all-time high (ATH). If Bitcoin rises above this level, we would expect a significant rally as fear of missing out (FOMO) could creep into the market and drive the price to unprecedented heights.
BTC Test ATH | Source: BTCUSDT chart on TradingView
However, it is important to realize that a return to the $69,000 level is possible. Such a pullback could result in a healthy consolidation phase, giving Bitcoin momentum and potentially fueling a subsequent rally toward new highs. This retrace could allow traders to accumulate capital ahead of an expected bull market.
Both bulls and bears will be closely monitoring price movements as the market approaches this critical juncture. If Bitcoin maintains its current momentum and breaks through the $73,794 resistance level, it could signal the beginning of a new bullish phase and spark a new wave of enthusiasm among investors and traders. The next few days will be crucial in determining the direction of BTC price movement.
Featured image from Dall-E, chart from TradingView
