According to CryptoQuant CEO Ki Young Ju, institutional investors have poured a staggering $86 billion into the Bitcoin market over the last six months, demonstrating the growing mainstream acceptance of cryptocurrencies.
This indication, according to the CryptoQuant founder, shows that this present cycle may differ from previous ones.
Bitcoin, the first and most popular cryptocurrency, has seen a tremendous increase in its value, up 151% yearly.
The Bitcoin boom marks a significant rebound from 2022, when values collapsed. The outlook improved drastically in 2023, and by March 14, 2024, Bitcoin had reached an all-time high of $73,737. The approval of Bitcoin-owning exchange-traded funds (ETFs) in the United States has been one of the most significant drivers for Bitcoin prices this year.
Accumulation by whales and institutional investors continues: according to Ali, a cryptocurrency analyst, Bitcoin whales have purchased more than 100,000 BTC over the past week, worth $7 billion.
BTC price action
The Bitcoin market has taken a breather from its powerful uptrend over the last two weeks, albeit now consolidating. Bitcoin plunged as low as $60,770 before recovering to $70,000. According to Glassnode, this price action is extremely similar to the last 2018-2021 cycle.
The overall Bitcoin market bears some similarities to previous ATH breakouts, particularly distribution pressure from the Long-Term Holder cohort.
Several on-chain indicators have indicated an increase in profit-taking activities, with more than $2.6 billion in realized profit taken as the market approached resistance.
Metrics such as MVRV and AVIV Ratio were +1 standard deviations from their long-term mean. Past instances have historically been points of interest, where the market encounters resistance, and some investors start to take profits and chips off the table.
At the time of writing, BTC had fallen 0.5% in the last 24 hours to $70,261, a 5% drop from its recent all-time high.