“16 percent of the BTC realized market cap is now owned by institutional investors,” claimed Mr. Ju after analyzing the total number of Bitcoin held by New York-based Grayscale Investments and in the mainstream companies’ reserves.
The total amount came out to be worth $49 billion. Bitcoin’s realized market capitalization is about $186 billion.
Small traders now see big investors holding an ample amount of cryptocurrency wealth against inflation, ultralow bond yields, and a depreciating US dollar. Meanwhile, many of the so-called whale trades have occurred after Bitcoin closed above $20,000, suggesting that whales have speculated on higher prices in the future.
In a separate data published Monday, Mr. Ju noted that Bitcoin whales are reaching the state of sell-side exhaustion.
“Fewer whales are depositing to exchanges,” the analyst explained. “I think this bull-run will continue as institutional investors keep buying and Exchange Whale Ratio keeps below 85 percent.”
Meanwhile, institutional involvement has further prompted retail traders to score new opportunities in the Bitcoin market. According to Adam Back, the co-founder/CEO of Blockstream, those small investors have pushed the BTC/USD exchange rate to its all-time high during the holiday season.
“I’ve instructed our investment bankers to raise debt in Q1, 2021 of up to US$100M to invest in $BTC,” confirmed CEO CK Lee, adding that Greenpro “will also invest its own cash into BTC.”
A ROSIER TECHNICAL SETUP FOR BITCOIN
An independent but pseudonymous market analyst spotted the cryptocurrency in a downside consolidation phase from its all-time high of $28,300. He stated that the phase appears like a Descending Triangle, a technical setup that puts Bitcoin en route to $29,300 on its next bullish breakout.
“Looks like a potential descending triangle to me here,” he added. “Targets may vary a bit depending on the exit point. Confirmation on a breakout and – preferably – retest.”
On the flip side, a negative breakout could lead the price towards $23,200, invalidating Mr. Ju’s $25,000-support call.
So $25k* on 25th, three new ATHs $24.7, $24.8 and $25k in a day. You think institutions did that? On Christmas day? Retail did it – only people near a keyboard.
— Adam Back (@adam3us) December 26, 2020