Despite experiencing a 2.36% decline in the past week, Bitcoin [BTC] has successfully maintained its position above the $100,000 mark at present.
The increasing interest from U.S. institutions and the limited adoption by non-U.S. entities are creating opportunities for further price escalation.
Rise in Institutional Demand for BTC
Recent data from CryptoQuant indicates a notable surge in the involvement of U.S. institutions — such as exchanges, funds, and banks — in Bitcoin [BTC], playing a significant role in its upward trajectory.
As a result, the proportion of BTC held by U.S. institutional investors continues to surpass that of their non-U.S. counterparts.
This growing interest can be attributed to the favorable cryptocurrency regulations enacted during President Donald Trump’s administration.
These figures also hint at the potential for further growth in BTC, particularly if non-U.S. entities start entering the market as regulations and policies become more favorable in their respective regions.
Analytical reports have shown that while U.S. institutions are actively buying Bitcoin [BTC], retail investors in the U.S. are displaying a bearish sentiment, with more inclined towards selling.
The Coinbase Premium Index, used to monitor buying and selling activities by U.S. retail investors through Coinbase compared to other exchanges, reflects this behavior.
A negative index, currently standing at -0.04, suggests that U.S. retail investors are offloading their BTC holdings, potentially due to ongoing market fluctuations.
The scenario could shift if U.S. retail investors switch to buying BTC and if interest from non-U.S. crypto market participants sees an uptick, paving the way for further price appreciation.
Predicting BTC’s Future Trajectory
Bitcoin’s market direction remains uncertain, with the possibility of both upward and downward trends, with varying liquidity levels positioned above and below the current price points.
Above the current price, the liquidity zones range between $107,234 and $108,257.70, while below, they span from $97,530.40 to $94,598.80. These levels hold significance for Bitcoin’s next market actions, as liquidity often acts as a price attraction point.
Given the slightly bearish market sentiment prevailing, Bitcoin [BTC] might witness a dip towards the lower liquidity region before rebounding upwards and sustaining its forward price momentum.