Over the past month, the value of Bitcoin has been subject to much turbulence, culminating in a complete lack of 3.09% based on data from CoinMarketCap. Notably, despite intermittent waves of a price rally, The crypto market leader did not reclaim the $65,000 price zone in all of August. Nonetheless, amidst this bearish market, institutional investors have taken the chance to strengthen their position within the Bitcoin market.
Bitcoin OTC Reserves Surge At Record Since 2021
In a Quicktake post on CryptoQuant, an analyst with the username caueconomy reported an statement on the purchasing behavior of Bitcoin institutional investors. By monitoring transactions of Bitcoin’s over-the-counter (OTC) addresses, this analyst conferred that these parties have been rapidly increasing their holdings prior to now few weeks.
Institutional investors often prefer OTC trading over exchanges for giant transactions because it allows them to purchase or sell large quantities of cryptocurrencies without moving the market price significantly. In line with caueconomy, these investors have now acquired 57,000 BTC, valued at $3.65 billion, within the last 30 days, representing a purchase order scale last seen in 2021.
The analyst notes that this buying activity is unusual as high levels of institutional OTC trading often occur during times of high volatility in contrast to low price volatility that has been largely present within the BTC market over the previous couple of weeks.
Nonetheless, caueconomy postulates that this large-scale acquisition could also be targeted at planned token offload in cases of “antagonistic” market response. In contrast, whales and institutional investors’ purchase of enormous amounts of an asset especially during market lows represents a bullish signal of confidence in future profitability.
Most recently, the premier cryptocurrency experienced a price boost on Friday, after US Federal Reserve Chairman Jerome Powell affirmed an incoming rate of interest cuts over the subsequent few months. Bitcoin rose by 4.84% to succeed in a peak of $64,879, just shy of the distinguished $65,000 resistance zone.
Commenting on this development, Uto Shinohara, financial expert and managing director of an asset investment company Mesirow, predicted a rate cut of 30bps in September and a complete rate cut of 95 to 100 bps by the tip of 2024. If such predictions prove true, Bitcoin and other cryptocurrencies are expected to surge in demand in the approaching months which could translate into significant profits for institutional investors.
BTC Price Overview
In line with data from CoinMarketCap, Bitcoin trades at $63,905 with a price gain of 5.38% within the last 24 hours. In tandem, the asset’s every day trading volume is up by 64.53% and valued at $42.94 billion.
Featured image from Coinformania, chart from Tradingview