Bitcoin Makes New ATH Above $126K, Institutional Flows Signal Path to $150K
Bitcoin is currently trading around $121,000, down a little over 2% in the last 24 hours. This is because the top crypto is consolidating
Quick overview
- Bitcoin is currently trading around $121,000, down over 2% after reaching a new all-time high of $126,219 earlier this week.
- Strong institutional demand has led to $3.55 billion in weekly inflows into Bitcoin exchange-traded instruments, boosting market confidence.
- Analysts predict Bitcoin could reach targets between $140,000 and $150,000 by the end of the year, supported by healthy derivatives markets.
- The supply of Bitcoin on exchanges has dropped to a five-year low, indicating a tightening market and reduced selling pressure.
Bitcoin BTC/USD is currently trading around $121,000, down a little over 2% in the last 24 hours. This is because the top cryptocurrency is consolidating after reaching a new all-time high of $126,219 earlier this week. Even though the market is down, strong institutional participation and healthy derivatives measures signal that the bull run is still going strong. Analysts are looking at $140,000 to $150,000 as possible targets by the end of the year.
Record Institutional Inflows Drive Market Confidence
The recent rise has been supported by huge institutional demand, with Bitcoin exchange-traded instruments seeing $3.55 billion in net inflows every week. This spike brought the total assets under management for listed Bitcoin products to $195.2 billion. In response, Bitwise Chief Investment Officer Matt Hougan posted a cryptic but positive statement that said “$1 trillion inbound” to Bitcoin-focused funds.
Right now, the total value of all Bitcoin funds around the world is about $200 billion. To reach $1 trillion, the number would have to grow five times, which would require pension funds and big wealth managers to keep using it for several quarters. The timetable is still unclear, but the path seems more and more likely as Bitcoin becomes more and more like digital gold in professional portfolios.
This tendency is getting stronger as more businesses use it. OranjeBTC, a Brazilian company, recently started trading after getting 3,675 BTC valued more than $445 million. This makes them one of the first Bitcoin treasury businesses to consider the cryptocurrency as a strategic reserve asset.
BTC/USD Technical Indicators: Further Upside Despite Consolidation
Bitcoin’s 4.2% drop after reaching an all-time high looks like a healthy correction after a 12.5% weekly gain. The cryptocurrency has already made 31% returns this year, which is much better than the S&P 500’s 14% rise during the same time period.
The derivatives markets are still doing well. Bitcoin monthly futures are trading 8% higher than spot prices on an annualized basis, which is well within the neutral 5–10% range. This means that people are feeling balanced rather than overly speculative, which lowers the possibility of a chain reaction of liquidations if prices go down more. Futures open interest on key exchanges is a strong $72 billion, which is only 2% down than Monday’s levels, even though the market has pulled back.
The supply of Bitcoin on exchanges is getting tighter and tighter. The amount of Bitcoin on trading platforms has dropped to a five-year low of 2.38 million BTC, down from 2.99 million BTC just a month ago. This 20% drop in easily available supply shows that buildup is still going on and makes it less likely that people would sell.
Bitcoin Price Predictions Range from $140K to $150K
Based on hundreds of simulations using Bitcoin’s price data since 2015, economist Timothy Peterson’s statistical modeling gives Bitcoin a 50% chance of completing October above $140,000. This goal would mean a 20.17% increase from the month’s opening price of $116,500, which is quite close to Bitcoin’s average October gain of 20.75% since 2013.
Peterson stresses that his strategy is based only on Bitcoin’s past price swings and cycles, so it doesn’t let emotions get in the way. But he also says that there is a 43% chance that Bitcoin will end up below $136,000, which shows how dubious short-term predictions can be.
More aggressively, looking at institutional flows and derivatives positions shows that Bitcoin might reach $150,000 before the end of the year. Crypto experts like Jelle and Matthew Hyland are sure that Bitcoin’s retest of its prior all-time highs will end in a rise. Jelle said, “It’s definitely over for bears.”
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Save