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In February, major institutional investors acquired 81,200 bitcoins, which is six times the amount of new issuance of the leading cryptocurrency during the same month. This figure represents the highest level since October of the previous year, according to analysts from Bitwise.
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Experts believe that this trend could significantly alter the supply-demand dynamics in the market and may drive the prices of the leading cryptocurrency higher.
“Given the limited supply of bitcoin, the increasing interest from large investors holds particular significance for the entire market. The return of funds and financial institutions is also seen as a signal that strengthens the confidence of retail investors,” stated Bitwise.
Typically, institutional investors adopt long-term strategies, and such substantial purchases indicate expectations of sustained growth rather than attempts to profit from short-term fluctuations, analysts suggested.
Additional support for demand is provided by the development of spot bitcoin ETFs and clarity in the cryptocurrency regulatory framework—if the level of interest remains, it could create conditions for a more stable influx of capital and reduce the proportion of speculative trades, according to Bitwise specialists.
Previously, Mark Connors, head of the consulting firm Risk Dimensions and former top manager at Credit Suisse, stated that the prolonged military conflict between the U.S. and Iran could lead to an increase in demand for bitcoin and the prices of the leading cryptocurrency.
