Bitcoin Could Rise Again as Institutions Increase Buying
Bitcoin (BTC) — currently around $120,368 — may see another price jump within a week, according to new analysis, as big investors continue buying more BTC.
On Wednesday, Charles Edwards, founder of Capriole Investments, shared data showing a surge of Bitcoin moving out of U.S. exchange Coinbase — a sign that institutions are buying.
Institutions Driving Demand
Capriole’s data reveals that on Tuesday, 75% of Coinbase’s trading volume came from institutional investors. Edwards said that whenever this number is above 75%, Bitcoin prices have historically risen in the following week.
This week, institutional demand is about six times higher than the 450 BTC mined each day. On Tuesday alone, companies added 810 BTC to their reserves, while Monday saw nearly 3,000 BTC added.
Boost from Interest Rate Cut Expectations
The buying spree followed U.S. inflation data for July that came in lower than expected, pushing Bitcoin’s price closer to its record high.
Edwards explained that stable inflation numbers make it almost certain the U.S. Federal Reserve will cut interest rates next month — possibly three times this year. Lower rates often boost risk assets like Bitcoin.
Market data from CME Group shows traders expect a 0.25% rate cut in September, though some are even betting on a larger 0.5% cut due to weak job market conditions.
Trading firm QCP Capital noted that despite a softer labor market, investors still see the Fed’s long-term interest rate bottoming around 3% by 2026. Analysts now look to next week’s Jackson Hole symposium for more clues on the Fed’s plans.
