Bitcoin Price Analysis: Why Institutional Investors Are Backing the Bull Run

Published by

Vignesh S G

September 19, 2024

The cryptocurrency market has been a rollercoaster ride in recent months, with Bitcoin, the king of cryptocurrencies, experiencing its fair share of ups and downs.

However, a new trend is emerging. It seems that Bitcoin is currently in a positive phase. In the last seven days, it has experienced a massive growth of 7.1%. The latest macroeconomic developments, like the US interest rate cuts, indicate that the Bitcoin market is likely to grow even further in the final quarter of the year. The latest post by Ki Young Ju, the CEO of CryptoQuant, brings attention to the changing institutional sentiment towards Bitcoin. Let’s dive in!

Institutions Are Not Shorting – Here’s Why

Ki Young Ju points out that institutional investors are now reducing their short positions on Bitcoin. He supports this with data from the Bitcoin CME Futures Net Position in USD chart.

The chart shows that net short positions on Bitcoin futures at CME have dropped by 75% over the past five months. This is significant because CME is one of the largest platforms where institutions trade Bitcoin futures. This shift indicates growing institutional support for Bitcoin.

Understanding the Market Sentiment

Institutional investor behavior often influences the market, with retail investors frequently mirroring institutional trends. With Bitcoin now receiving positive signals from institutional investors, there’s a strong likelihood that short-term investors who exited during recent market uncertainties might return.

Given the current institutional backing, it’s reasonable to anticipate a bullish trend for Bitcoin in the near future. This positive shift in sentiment aligns with forecasts suggesting substantial growth ahead for Bitcoin. If this trend continues, the likelihood of a major market drop diminishes, supporting the potential for further significant gains.

Also Check Out: Buy, Hold, or Sell: Solana (SOL) and Cardano (ADA) Price Fail To Break Trend!

Are you investing in Bitcoin based on the recent trends? Let us know your thoughts.

Vignesh S G

Vignesh is a young journalist with a decade of experience. A proud alumnus of IIJNM, Bengaluru, he spent six years as a Sub-Editor for a leading business magazine, published from Kerala. His interest in futuristic technologies took him to a US-based software company specialising in Web3, Blockchain and AI. This stint inspired him to view the future of journalism through the lens of next generation technologies. Now, he covers the crypto scene for Coinpedia, uncovering a vibrant new world where technology and journalism converge.

Published by

Vignesh S G