• Bitcoin has been struggling for price stability due to negative momentum over recent weeks.
• Institutional investors have been consistently purchasing Bitcoin, with a noticeable increase in open interest in the Bitcoin futures market.
• The current price of Bitcoin is likely to test the $25,860 level of short-term support if it drops below.
Institutional Interest in Bitcoin Continues
Institutional investors are consistently purchasing Bitcoin as per CryptoQuant. Over the last year, Bitcoin reserves on non-US exchanges have increased by over 10%. On the other hand, Coinbase, Gemini, and Kraken, three major American crypto exchanges, have seen their Bitcoin holdings drop by 30% to over 50%. Moreover, there has been a dramatic increase in the number of investors taking part in the Bitcoin futures market since November 2022.
Bitcoin Price Struggles Below $26K
Despite hopes of investors for a market turnaround, Bitcoin has fallen below $26,000 and is currently trading at $25,901. The price was consolidating around the critical $26,000 mark for some time before breaking out earlier today. If price manages to drop below the support level of $25,860 it will signal a continuation of the downtrend all the way to $25,630.
Price Increase Could Reach ATHs
On the other hand if bulls are successful in pushing the price over $26170 then it might go as high as reaching an all-time high (ATH). Major triggers such as U.S Securities and Exchange Commission (SEC) approving a spot ETF for bitcoin could be responsible for this surge in prices.
What Does This Mean?
This means that despite bitcoin’s ongoing struggle with instability and bearishness there is still hope of recovery from institutional interest within its ecosystem and friendly regulation from governing bodies like U.S SEC providing much needed confidence among retail investors who can trust its legitimacy now more than ever before because they know their investments are safe here with desired returns somewhat guaranteed through these regulatory tools available which provide counterbalance against volatility created by uncertainty about future direction of bitcoin’s prices .
In conclusion , while bitcoin’s current trend signals further downward momentum , institutional investment from non-US exchanges coupled with positive developments such as SEC approval on spot ETFs can provide much needed relief and help push prices back up towards ATH levels once again .