6 hours ago
Institutional funds are dominating Bitcoin inflows, sparking fresh optimism for a price upswing. This comes on the heels of an anticipated crypto price rally in Q1 2025. While new inflows remain bullish, the crypto market faces severe selling pressure as daily trading volume plummets. Institutional Demand Builds Confidence For most of 2024, traditional investment in the crypto market was a constant trend. These participants poured funds into the market, leading to a monumental shift in sentiments ahead of retail investors. In recent weeks, a similar pattern has been forming considering exchange numbers. According to CryptoQuant analysts, Bitcoin whales have begun a new accumulation phase. The last 30 days saw institutional investors pick up over 34,000 BTC with soaring buy pressure amid asset recovery. These large purchases were also followed by transfers to other custodians pointing to signs of a long-term upswing strategy. A look at miner balances also showed the same hodling strategy. Bitcoin miner balances are used to determine the general sentiments due to sales to prevent losses in a bear market. At the moment, BTC miners are not offloading their reserves but making attempts to acquire more assets. The activity of institutional investors has kept miner balances in the green zone. Overall, signs of a bull market kicked off in 2023 with improved institutional interests due to ETF optimism. After the approval of these products last year, inflows went through the roof to all-time highs as seen in the price of Bitcoin and other assets. The surge of institutional demand also led to a sharp decline in retail numbers. “ However, large players took advantage of the consolidation to open TWAP positions, patiently accumulating just below US$ 95K. In the last 30 days, more than 34 thousand BTCs were accumulated by institutional investors, providing buying pressure for the current recovery in Bitcoin. Note that although we have seen periods of rebalancing in institutional portfolios,” CryptoQuant added. Recent Dip Clouds Inflows Despite increased institutional accumulations, the current sell pressure threatens the projected asset price. Several bulls made projections on the heels of macroeconomic factors flipping positive in the United States. The rising confidence is tipped to usher in more funds to the crypto market. Institutions also saw a bull target of $200K with growing demand. However, recent exits have wiped out billions from the market cap, taking the price of Bitcoin below $96K.
ZyCrypto
You can visit the page to read the article.
Source: ZyCrypto
Tags :
Bitcoin News Bitcoin News
Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of BitMaden. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.
Bitcoin ETFs May Attract $48 Billion in Net Inflows by 2025, Analysts Suggest
BlackRock’s recent foray into the Bitcoin ETF arena is poised to reshape the investment landscape, as analysts predict a surge in Bitcoin fund inflows by 2025. This strategic move not ZyCrypto
Donald Trump Jr. joins Kalshi as a strategic advisor
Donald Trump Jr., the eldest son of President-elect Donald Trump, has joined prediction market platform Kalshi as a strategic advisor. The move highlights Trump Jr.’s growing interest in technology and financial innovation. Kalshi, founded in 2018, allows users to bet on real-world events, including politics, weather, and current affairs. The platform gained prominence after U.S. courts approved election betting last year. Kalshi secured court approval to list prediction contracts on U.S. Congressional control after a legal battle with the Commodity Futures Trading Commission . A federal appeals court overturned the CFTC’s prior denial, allowing the regulated startup to offer these event markets. Don Jr.’s bold vision and deep expertise perfectly align with our mission to reshape how America engages with information. His guidance will help accelerate our expansion and push prediction markets into the mainstream. — Kalshi (@Kalshi) January 13, 2025 In a post on social media platform X, Trump Jr. explained his decision to join Kalshi, citing the platform’s accurate predictions during the 2024 presidential election. He noted that Kalshi provided clarity about the Republican victory hours before traditional media outlets reported it. “I immediately knew I had to contribute to their mission,” Trump Jr. wrote, praising Kalshi’s approach to delivering insights through prediction markets. Prediction markets like Kalshi allow users to wager on the outcomes of specific events. For instance, users can bet on the number of executive orders a president will sign or the likelihood of a Senate confirmation vote. Another notable prediction market in mainstream happenings is Polymarket . Both Kalshi and Polymarket use real-time data and crowd sentiment to generate probabilities, often providing faster insights than traditional polls or news outlets. You might also like: Tether to establish HQ in El Salvador Kalshi and crypto Kalshi introduced cryptocurrency deposits using the stablecoin USDC ( USDC ), integrating crypto into its services. In contrast, Polymarket is a decentralized prediction market on blockchain that utilizes cryptocurrencies for transactions, covering diverse topics like politics and global events. It gained traction during the 2024 U.S. elections but has faced regulatory challenges in the U.S. Both platforms underscore the growing intersection of prediction markets and cryptocurrency within decentralized finance. While Kalshi adheres to regulatory guidelines, Polymarket leverages blockchain’s decentralized features, offering different approaches to event-based speculation in the crypto space. You might also like: Circle partners with Bison Digital Assets for MiCA-compliant stablecoins ZyCrypto
