Institutional Investors Drive Bitcoin Surge: Analyst Insights
According to a noted analyst in the cryptocurrency space, recent on-chain activities indicate that major institutional investors are the driving force behind the latest surge in Bitcoin's (BTC) price.
Ali Martinez highlights a significant decrease in the daily creation of new BTC addresses amidst the recent upward movement in Bitcoin’s price.
As the price of #Bitcoin increases, there's a noticeable decline in the creation of new $BTC addresses daily.
This trend points towards a lack of retail participation in the current #BTC bull rally, suggesting that the recent price action is primarily fueled by institutional… pic.twitter.com/DVVfcQ20bG
— Ali (@ali_charts) February 16, 2024
Martinez suggests that the decline in the creation of new BTC wallets is indicative of institutional involvement propelling the current price trend, as individual retail traders remain largely on the sidelines.
This observation leads Martinez to conclude that the ongoing bullish momentum in BTC is predominantly fueled by institutional demand, rather than active participation from retail traders.
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Martinez further points out that Bitcoin’s open interest (OI) across all exchanges has surged to $13.57 billion, reaching its highest level since April 2022. Open interest serves as a metric to monitor the total value of open BTC long and short positions.
#Bitcoin open interest across all #crypto exchanges, representing the total number of open long and short $BTC positions, has surged to its highest level since April 2022, reaching $13.57 billion! pic.twitter.com/ZIVqJByTN1
— Ali (@ali_charts) February 16, 2024
Additionally, Martinez highlights significant accumulation by Bitcoin whales, who have acquired over 100,000 BTC in the last ten days, valued at approximately $5 billion.
Shifting focus to other cryptocurrencies, Martinez suggests that Cardano (ADA) might experience an earlier breakout than anticipated.
The #Cardano breakout may come earlier than expected! Still, if history repeats itself, we are anticipating $ADA to rise to $0.80, retrace to $0.60, and then enter a bull run toward $8 by January 2025! pic.twitter.com/HuVAxFEg9Y
— Ali (@ali_charts) February 15, 2024
Martinez predicts a potential price surge for ADA, envisioning a scenario where it could rise to $0.80, undergo a retracement to $0.60, and eventually embark on a bullish trajectory towards $8 by January 2025.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
