Recent reports indicate that institutional investors and public companies now control over 10% of the total Bitcoin supply. This rise in institutional demand raises interest in its market impact.
Rising Institutional Demand for Bitcoin
According to data shared by Charles Edwards, CEO of Capriole Investments, institutional demand for Bitcoin has reached record levels. Over the past 18 months, institutional holdings have increased from 4% to over 10%. Currently, ETF assets amount to around 1.62 million BTC, while public companies hold approximately 918,000 BTC. This significant increase is linked to institutional purchases exceeding new Bitcoin issuance by a factor of ten.
Impact of Institutional Investors on Prices
Institutional Bitcoin demand creates market pressure that leads to supply shortages. Historically, when demand from institutional investors surpasses new mining supplies, this has preceded major price changes. Charles Edwards notes that when institutional purchases account for 10-50% of daily trading volume, BTC prices tend to spike.
Future Forecast: Reaching $120K
Recent forecasts from Edwards and other analysts suggest that rising institutional demand could propel Bitcoin to a new price range of $118,000 to $123,000. The increase in institutional interest and the dwindling supply of newly minted Bitcoin are likely to create a strong bullish trend in the market.
Based on recent findings, institutional investors now hold over 10% of the total Bitcoin supply and are purchasing it at ten times the rate of miners. This creates structural scarcity in the market and indicates the potential for rapid price changes in the future.
