Key Points
- U.S. institutions are buying Bitcoin (BTC) at a higher rate than non-U.S. entities.
- Bitcoin’s future price movement could be influenced by liquidity levels above and below its current price.
U.S. institutions are showing a greater interest in purchasing Bitcoin (BTC), outpacing their non-U.S. counterparts.
This comes despite a recent 2.36% decline in Bitcoin’s value. However, Bitcoin still maintains a value above the $100,000 mark.
Institutional Demand Fuels Bitcoin’s Growth
CryptoQuant reports a rising interest in Bitcoin among U.S. institutions, including exchanges, funds, and banks. This interest is a major driver of Bitcoin’s growth.
The percentage of Bitcoin held by U.S. institutions remains higher than that held by non-U.S. entities. This is likely due to the favorable crypto policies implemented by the Trump administration.
This trend indicates the potential for further Bitcoin growth, especially if non-U.S. entities begin buying the asset as regulatory clarity improves in their regions.
U.S. Retail Investors and Bitcoin
While U.S. institutions are buying, U.S. retail investors are not bullish on Bitcoin. Instead, they are selling, as shown by the Coinbase Premium Index.
The index tracks buying or selling activity among U.S. retail investors by comparing Coinbase activities to other cryptocurrency exchanges. Currently, the index shows a reading of negative 0.04, indicating that U.S. retail investors are selling Bitcoin.
This could be attributed to various factors, including the current market downturn. However, if retail investors start buying Bitcoin and non-U.S. crypto entities show increased interest, Bitcoin could gain momentum for further price increases.
Bitcoin’s Future Direction
The future direction of Bitcoin’s market is uncertain—it could trend higher or lower, with significant liquidity levels situated above and below its current price.
Liquidity levels above the chart range between $107,234 and $108,257.70, while those below range from $97,530.40 to $94,598.80. These levels could significantly influence Bitcoin’s next move, as liquidity often acts as a price magnet.
Given the slightly bearish market sentiment, Bitcoin could potentially drop to the lower liquidity region before bouncing back and continuing its upward price movement.