Bitcoin has set a new record by surpassing $112,000, fueled by increasing interest from U.S. institutional investors.
Institutional Bitcoin Purchases
According to CryptoQuant analysts, the recent price surge for Bitcoin is linked to active purchases from institutional investors in the U.S. The information on the Coinbase Premium Gap confirms that Bitcoin was sold at a higher price compared to other markets like Binance.
Decrease in Selling Pressure from Whales
The decrease in trading pressure from U.S.-based Bitcoin whales limits large-scale sell-offs and aids price stability. Analysts note that 'Buyers on Coinbase paid $42 more per BTC than those on Binance—showing strong demand from U.S.-based investors… even after hitting a new ATH, demand remains strong. That’s a sign bulls might not be done yet.'
Impact on the Market and Bitcoin's Future
The recent Bitcoin surge has positive implications beyond its own valuation, impacting market confidence and liquidity, benefiting altcoins like Ethereum and Solana. Institutional buyers are partly motivated by new regulatory developments in the U.S., enhancing investor confidence in Bitcoin and associated financial instruments like ETFs.
Thus, the current trend of Bitcoin's strengthening, supported by institutional purchases and reduced selling pressure from whales, signals potential continued price growth under favorable regulatory conditions in the U.S.
