The post The Impact of Institutional Investors on Bitcoin appeared on BitcoinEthereumNews.com.

For years, Bitcoin enthusiasts have been expecting a significant change in the value due to the involvement of institutional investors. The concept was simple: as companies and large financial entities invest in Bitcoin, the market would experience explosive growth and a sustained period of rising prices. However, the actual outcome has been more complex. Although institutions have indeed invested substantial capital in Bitcoin, the anticipated ‘supercycle’ has not unfolded as predicted. Institutional Accumulation Institutional participation in Bitcoin has significantly increased in recent years, marked by substantial purchases from large companies and the introduction of Bitcoin Exchange-Traded Funds (ETFs) earlier this year. Figure 1: Bitcoin company treasury holdings. Access Live Chart 🔍 Leading this movement is MicroStrategy, which alone holds over 1% of the total Bitcoin supply. Following MicroStrategy, other prominent players include Marathon Digital, Galaxy Digital, and even Tesla, with significant holdings also found in Canadian firms such as Hut 8 and Hive, as well as international companies like Nexon in Japan and Phoenix Digital Assets in the UK; all of which can be tracked via the new Treasury data charts available on site. Figure 2: Detailed analysis of BTC treasuries for publicly traded companies. Access Live Chart 🔍 In total, these companies hold over 340,000 bitcoin. However, the real game-changer has been the introduction of Bitcoin ETFs. Since their inception, these financial instruments have attracted billions of dollars in investments, resulting in the accumulation of over 91,000 bitcoin in just a few months. Together, private companies and ETFs control around 1.24 million bitcoin, representing about 6.29% of all circulating bitcoin. A Look at Bitcoin’s Recent Price Movements To understand the potential future impact of institutional investment, we can look at recent Bitcoin price movements since the approval of Bitcoin ETFs in January. At the time, Bitcoin was trading at around $46,000.…

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Filed under: News - @ August 30, 2024 4:23 pm