"War Can't Stop It"...Bitcoin, Riding Institutional Buying, Starts New High Rally

▲ Bitcoin (BTC) / ChatGPT Generated Image

Bitcoin (BTC) has entered a new uptrend, forming a strong price support line amidst geopolitical risks from the Middle East and aggressive institutional buying.

Cryptocurrency specialized YouTube channel Altcoin Daily deeply analyzed the rapid changes in the Bitcoin market in a video uploaded on April 16 (local time). As tensions in the Middle East escalate, Bitcoin is solidifying its position as a stable store of value. In particular, the active use of Bitcoin and stablecoins as payment methods in major conflict areas like the Strait of Hormuz is driving price increases. Bloomberg also confirmed that Iran is moving billions of dollars worth of assets into Bitcoin, supporting this trend.

Market leadership is rapidly shifting from individual investors to institutional investors. As Bitcoin tested the $75,000 mark, individual investors, driven by anxiety, realized profits of $1.14 billion, flooding the market with supply. In contrast, institutions, including MicroStrategy's Chairman Michael Saylor, are scooping up billions of dollars worth of this supply. When short-term holders are swayed by price volatility and send Bitcoin to exchanges, long-term oriented whales absorb all of it, effectively forming a bottom.

Actual on-chain data clearly reveals the market's hand-over phenomenon. In the last 24 hours, short-term holders deposited over 65,000 BTC to exchanges. This is interpreted as a typical capitulation, a process where assets from impatient investors are transferred to patient investors. Chairman Saylor continues to buy steadily even during such downturns or sideways markets, betting on Bitcoin's scarcity value.

The actions of regulatory authorities have, on the contrary, served as an opportunity to increase market transparency. The U.S. Treasury Department recently sanctioned some virtual asset exchanges involved in terrorist financing, blocking the flow of illegal funds. This cleansing action contributes to Bitcoin gaining trust within the established financial system. With the influx of institutional funds and geopolitical instability intertwined, Bitcoin is emerging as a global financial alternative beyond a mere asset.

In conclusion, Bitcoin maintains strong support despite a large-scale sell-off by short-term investors. The massive inflow of institutional funds has secured the downward rigidity of Bitcoin's price and increased expectations for further gains. Market experts believe that Bitcoin is highly likely to begin a full-fledged rally once the current hand-over phenomenon is complete. Investors should pay attention to the long-term accumulation behavior of institutional investors rather than the psychological fluctuations of individual investors to discern the fundamental changes in the market.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*