- Twenty One Capital’s acquisition of 42,000 BTC highlights growing institutional interest.
- The Bitcoin ETF market sees a significant net inflow, tightening the supply.
- Bitcoin’s correlation with other markets may evolve, impacting future asset valuation.
Twenty One Capital announces the acquisition of 42,000 Bitcoin, valued at $4 billion.
Growing institutional interest in Bitcoin indicates a significant shift in supply dynamics, potentially influencing future price increases. Twenty One Capital has joined the ranks of major corporate holders of Bitcoin, adding 42,000 BTC to its portfolio. Institutional investment continues to grow, fueling competition among corporates and funds. The Bitcoin ETF market in the U.S. observed a net inflow of $3 billion last week.
Institutional Bitcoin Buy-Up Reaches 9% Threshold
Supply tightening is now in full effect, as evidenced by a reduction in BTC balances on exchanges, dropping from 16% to 13% of total supply. This reduction is attributed to the migration of holdings to ETF custodians rather than an actual decrease in market circulation.
Investor reactions remain optimistic, with market analysts like InvestAnswers, noting:
“If you look at the steady correlation between Bitcoin and Nasdaq, it is extremely tight because Bitcoin is considered a risk asset, [while] gold is considered a risk-off asset. But here, if you look at the Bitcoin/gold correlation, it fluctuates very heavily… I expect the correlation to increase with gold as the broader dynamics of the market will shift as well. I also believe gold is overbought, so I see gold mean-reverting and I see Bitcoin going up versus gold over the next six months.”
Record Inflows into Bitcoin ETFs Shape Market Dynamics
Did you know? The current 9% control of Bitcoin supply by institutions marks a historic high compared to previous bull market cycles.
According to CoinMarketCap, Bitcoin trades at $94,615.72, boasting a market cap of 1,878,835,977,309 and dominating 63.36% of the market. It has witnessed a 19.12% surge over 60 days, although it shows a 7.6% decline in the last 90 days.
Analysts from the Coincu research team highlight Bitcoin’s increasing institutional engagement as a pivotal factor. Such trends are expected to influence long-term asset evaluation, potentially leading to regulatory discussions around digital asset integration.
Source: https://coincu.com/334829-institutional-bitcoin-etf-inflows/