According to a report from JP Morgan, institutional demand has been a catalyst for Bitcoin’s recent outperformance.
Market data reveals a massive spike in Bitcoin’s dominance levels.

Bitcoin’s recent rally has been traced to a significant factor. According to JP Morgan, institutional demand can be credited for Bitcoin’s recent outperformance.

In a recent report shared with investors on Wednesday, JP Morgan stated that the positive sentiments surrounding the potential approval of a Spot Bitcoin (BTC) exchange-traded-fund (ETF), has triggered a bullish rally for the apex cryptocurrency.

Speaking to this effect, analysts led by Nikolaos Panigirtzoglou, stated that the recent inflow of funds Into the Bitcoin market was aided by institutional players. “It looks like this latest flow impulse had institutional participation,” the analysts wrote in the research report.

The cryptocurrency market has been awaiting a green light for a Bitcoin ETF for the longest time. However, application from leading investment platforms has been met with constant disapproval.

Regulatory bodies like the U.S Securities and Exchange Commission (SEC) have required applicants to either re-structure their applications or stand in queue for long periods. As a result, the market has been largely pessimistic until recently.

About the Chicago Mercantile Exchange, the analyst revealed that its futures position proxy has increased to new levels within the space of a week. The analyst asserted.

Our futures position proxy based on CME bitcoin futures, which tends to be used mostly by institutional investors, has spiked over the past week rising not only to the highest level for this year but also to levels last seen in August 2022 before the FTX collapse.

Bitcoin’s dominance hits a new yearly all-time high

Although altcoins are still lagging, the recent rally has sent Bitcoin’s dominance to a 30-month high.

At the time of this report, Bitcoin is trading at a press time price of $34,103. The big bull has secured more than 14% in gains, despite trading volume plummeting by 19% within the last 24 hours. The next few hours remain crucial for Bitcoin, as the bulls are well-positioned to clear off weekly gains. However, the inability to sustain momentum at its present position could send the asset to lower lows.

Created to keep track of the leading digital assets by market cap relative to the entire crypto market, The BTC Dominance rate increased by a staggering 54.4%, according to data from TradingView. Notably, this is the highest level attained since the bull rally in April of 2021.

This means that in terms of market cap, Bitcoin is now more valuable than every existing cryptocurrency combined. Before attaining this feat, the BTC dominance index fluctuated between 39% and 49% for a significant period. The index broke out in the middle of June, just as Blackrock announced that it was filing for a Spot Bitcoin ETF.

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Filed under: Bitcoin - @ October 29, 2023 8:02 am