Bitcoin Price Analysis: Why Institutional Investors Are Backing the Bull Run
The post Bitcoin Price Analysis: Why Institutional Investors Are Backing the Bull Run appeared first on Coinpedia Fintech News
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!
Bitcoin Institutional Sentiment: An Overview
Young observes that institutional investors are no longer aggressively shorting Bitcoin. He shares the Bitcoin CME Futures Net Position in USD chart as evidence to support his observation with data.
Looking at the chart, it is evident that net short positions on Bitcoin futures at the CME have dropped by at least 75% over the last five months. The data in the chart is crucial, as the CME is one of the largest platforms where institutions trade Bitcoin futures. The key implication that can be derived from this observation is that currently there exists strong institutional sentiment in favor of Bitcoin.
What Does This Mean for Bitcoin?
It is a known fact that the attitude of institutional investors towards an asset can influence it positively, as there is a tendency among retail investors to follow the path of institutional investors. As Bitcoin now enjoys the confidence of institutional investors, there is a high chance that those short-term investors, who left this crypto during the recent period of uncertainty, may return to the market.
In conclusion, it can be said with some certainty that there is a high possibility for the Bitcoin market to experience a bullish trend soon, especially considering the fact that it now has the strong backing of institutional investors. This positive shift in institutional sentiment supports the Bitcoin price prediction that suggests significant growth ahead. If the trend continues like this, there is little chance that the market will witness any major drop in the near future – which is important for it to achieve a massive growth.
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