Bitcoin (BTC) remains strong as new data shows institutional investors are buying the coin in droves
After the volatility that we saw over the last few weeks, it seems like Bitcoin (BTC) is starting to show a lot of resilience. The coin has regained $40, 000 and new data shows that the flow of institutional money is playing a big role in this. Here are the facts so far:
New data shows that nearly all trades in BTC consist of transactions above $100,000.
Institutional money has dominated BTC liquidity since 2020.
At press time, the coin was trading at $40,974, virtually unchanged in 24 hours.
Data Source: Tradingview
Bitcoin (BTC) – is $50,000 in sight?
Early predictions for Bitcoin in 2022 were quite ambitious. There were some analysts who even thought that coin would hit $250,000 by the end of the year. In fact, the most conservative estimate had BTC at $100,000 by year-end.
This could still happen. After all, we are not even in Q2. But the way the broader crypto market has started, Bitcoin will go through a wide period of volatility. It is highly unlikely that we will get to $50,000 in the near term.
For most parts of 2022, BTC has largely bounced off between $45,000 and $35,000 and we expect this to remain the case for the foreseeable future. The flow of institutional money is also going to ramp up by the end of the year.
Why are institutions buying Bitcoin (BTC)?
Well, there are several reasons. For starters, the coin has dipped quite significantly from all-time highs. This provides large capital holders the perfect entry point to ride the Bitcoin and the crypto wave.
But also, Bitcoin is a safe bet in the crypto market. It is seen as the gold standard and as such, institutions largely focus on it for the safety and longevity, it has to offer.
The post Bitcoin (BTC) remains strong as new data shows institutional investors are buying the coin in droves appeared first on Coin Journal.