Bitcoin has been experiencing volatility in its price over the past month, resulting in a 3.09% total loss, as reported by CoinMarketCap. Despite attempts at a price rally, Bitcoin failed to reach the $65,000 price zone throughout August. However, institutional investors have taken advantage of this bearish market to increase their stake in the Bitcoin market.
In a recent analysis on CryptoQuant, an analyst known as caueconomy highlighted the surge in Bitcoin over-the-counter (OTC) reserves by institutional investors. OTC trading allows these investors to conduct large transactions without significantly impacting the market price. According to caueconomy, institutional investors have acquired 57,000 BTC, worth $3.65 billion, in the last 30 days, marking a significant increase since 2021.
The analyst noted that this buying activity is unusual given the low price volatility in the Bitcoin market recently. However, caueconomy suggested that this acquisition might be a strategic move to prepare for potential market fluctuations. Buying large amounts of an asset during market lows typically indicates confidence in future profitability.
Bitcoin saw a price surge after US Federal Reserve Chairman Jerome Powell hinted at upcoming interest rate cuts. The cryptocurrency rose by 4.84% to reach $64,879, approaching the $65,000 resistance level. Financial expert Uto Shinohara predicted further rate cuts in the future, which could lead to increased demand for Bitcoin and other cryptocurrencies, benefiting institutional investors.
Currently, Bitcoin is trading at $63,905 with a 5.38% price gain in the last 24 hours. The daily trading volume has also increased by 64.53% to $42.94 billion. This positive price movement may indicate growing investor interest in Bitcoin.
Overall, despite the recent volatility in the cryptocurrency market, institutional investors have been actively accumulating Bitcoin through OTC trades. The current market conditions and potential future developments, such as interest rate cuts, could further drive demand for Bitcoin and other digital assets, leading to potential profits for institutional investors in the coming months.
