Key Points
- Bitcoin is increasingly viewed as a store of value, with major institutions betting on its future.
- Massive amounts of USDT are flooding the market, indicating signs of liquidity.
Bitcoin’s status as a store of value is gaining traction, with significant institutions placing their bets on its future. This trend is underscored by the 10% gains on Bitcoin’s weekly charts, which have pushed it to a new all-time high of $77,000. The rise is attributed in part to growing uncertainty over fiscal policies, particularly tariffs on China and the increasing national debt.
With the new administration focusing on positioning the United States as a crypto capital, Bitcoin’s position as a safe haven might be subject to change.
Bitcoin’s Future Backed by Big Institutions
Bitcoin’s fixed supply of 21 million coins is leading investors to view BTC as a true store of value. This support is vital, especially as the derivative markets have evolved since the last presidential election, with Open Interest (OI) hitting a record $45 billion.
Growing institutional interest provides long-term security, helping to absorb speculative swings. Over the last 24 hours, $36.28 million in liquidations occurred, with $25.20 million in short positions being closed.
BTC ETFs also broke records with massive inflows just a day after the election results. This has given retail investors a strong foothold, viewing the current price as a high-risk, high-reward dip.
Massive Liquidity on the Horizon
Unlike previous cycles, where USDT market dominance slid but rebounded, this time, its dominance has steadily dropped. Despite BTC entering a high-risk zone, the dominance showed consistent red bands, hitting a daily low of 6% on Election Day.
Tether’s Treasury recently minted 1 billion USDT tokens, reflecting the current market conditions as Bitcoin emerged as a safer asset. However, despite bullish signs, the market may be overheating. The RSI indicated an overbought condition, with 74% of price movement upwards in the last two weeks.
While a minor pullback may be triggered by weak hands cashing out, the overall market sentiment still points to a rally to $80k before the end of the month. Rising uncertainty around ‘Trump trades’ makes Bitcoin a safer bet than equities, bolstering institutional interest.
Though a small dip seems possible, BTC’s bull rally appears poised to continue at present.