Bitcoin ($BTC /USD) has been locked in a sideways trading range for several months, yet this hasn’t deterred institutional investors from increasing their holdings. According to K33 Research’s senior analyst Vetle Lunde, over 262 new firms invested in U.S. spot Bitcoin exchange-traded funds (ETFs) in the second quarter of 2024. This steady inflow of institutional capital highlights the growing confidence in Bitcoin's long-term potential, despite the current market stagnation.
Interestingly, many institutional investors are not only holding their positions but are also increasing them. Matt Hougan, Bitwise's chief investment officer, revealed on X that 44% of asset managers have boosted their #Bitcoin ETF holdings, while 22% have maintained their positions. Only a small fraction, 13%, exited, and 21% reduced their holdings. Hougan described these results as “a solid performance, consistent with other ETFs.”
However, despite the bullish long-term outlook, near-term sentiment is turning cautious. Coinglass, a cryptocurrency analysis platform, noted that Bitcoin’s rising open interest could signal potential downside risk. Additionally, analysts are watching the development of a death cross, with the 50-day simple moving average (SMA) dipping below the 200-day SMA. If Bitcoin fails to hold the critical $55,724 support, it could trigger a decline toward the $50,000 mark. On the flip side, if the bulls manage to push the price above the 50-day SMA, it could pave the way for a rally to $65,659, and potentially even $70,000.
