🤔 Can Bitcoin Hold Its $100K Value? The Role of Institutional Investors and ETFs
Ever since Bitcoin achieved an all-time high of $103k last week, the top cryptocurrency has enjoyed a positive market sentiment despite a few price corrections. Currently, the price is hovering around $100k. According to CoinMarketCap, BTC's market capitalization is $1.99 trillion.
As the year draws to a close, important fundamental could maintain the positive upward trend for the top cryptocurrency. Institutional investors have reportedly played an important role in the value of Bitcoin.
🔸 Institutional Adoption
Among these important players are reportedly the U.S.-listed Bitcoin ETFs, MicroStrategy, and crypto miners. This could be one of the factors partly sustaining the price above $100k. Trading Volumes were $63 billion in the past 24 hours.
Bitcoin doubled its value from a low of $54 in early September boosted by a surge in futures, spot, and ETF trading activities, Coindesk reported. The market also experienced a substantial growth after the U.S. election in early November pushing trading volumes past $100 billion.
Institutional players like U.S.-listed Bitcoin ETFs and MicroStrategy have bolstered Bitcoin’s demand. Since September, both cohorts have added approximately 200,000 BTC each to their holdings, with ETFs surpassing 1 million BTC in total reserves.
Binance, the world’s largest crypto exchange, has also seen a record-breaking year. With $21.6 billion in user fund deposits, Binance outpaced the next ten exchanges combined. Average BTC deposits surged, reflecting growing institutional and corporate interest in digital assets.
MicroStrategy’s strategic accumulation of 197,250 BTC reflects its confidence in Bitcoin as a corporate asset, a strategy now being mirrored by miners. Among the miners planning to buy more Bitcoins is Riot Platforms, which recently announced its intention to raise $500 million to acquire more Bitcoin. This announcement followed the historic surge in Bitcoin.
