"Institutions Snap Up 9 Times New Supply"...Bitcoin, 80,000 Dollar Mark Soon to Break

▲ Bitcoin (BTC)/AI generated image

Bitcoin (BTC) is on the verge of reclaiming the $80,000 mark, driven by overwhelming buying pressure from institutional investors who are absorbing nine times the new supply.

Scott Melker, host of the cryptocurrency podcast "The Wolf of All Streets," stated in an episode released on April 24 (local time) that the market conditions are very healthy due to the explosive increase in institutional inflows into Bitcoin. U.S. spot Bitcoin ETFs have purchased 18,991 BTC over the past five trading days. This figure is nine times the new supply generated during the same period.

BlackRock's IBIT recorded seven consecutive days of inflows, absorbing a total of $1.9 billion. Melker noted the consistent inflows regardless of Bitcoin's price volatility, indicating a continuous accumulation in the background, beyond the usual relationship where price drives inflows.

The aggressive moves by institutions are also confirmed through the publicly traded company, Strategy. Its executives, including CEO Phong Le, are buying billions of dollars worth of Bitcoin every week. They particularly employ a strategy of quickly securing available market supply by leveraging stock premiums.

On-chain data already shows Bitcoin supply hitting its bottom. The holdings of large wallets are continuously increasing. Melker analyzed, "It's only a matter of time before Bitcoin's price breaks $80,000 as the supply and demand imbalance is maximized." As institutions' long-term holding tendencies strengthen, the circulating supply is expected to further shrink.

Bitcoin is entering a new price formation phase amidst historical institutional accumulation. Whether it settles above $80,000 will be a crucial turning point in determining the overall bull market for the cryptocurrency sector in the future.

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