"Institutions snap up 9 times new supply"...Bitcoin to soon break $80,000 mark

▲ Bitcoin (BTC)/AI generated image

Bitcoin (BTC) is on the verge of reclaiming the $80,000 mark, driven by overwhelming buying pressure from institutional investors who are absorbing 9 times the new supply.

Scott Melker, host of the crypto podcast The Wolf of All Streets, stated in an episode released on April 24 (local time) that the market situation is very healthy due to the explosive increase in institutional inflows into Bitcoin. US spot Bitcoin ETFs purchased 18,991 BTC over the past five trading days. This figure is nine times the new supply generated during the same period.

BlackRock's IBIT recorded capital inflows for seven consecutive days, absorbing a total of $1.9 billion. Melker noted the consistent inflows regardless of Bitcoin's price volatility. This indicates continuous accumulation happening in the background, beyond the usual relationship where price drives inflows.

The aggressive actions of institutions are also evident through the publicly traded company, Strategy. Its executives, including CEO Phong Le, are buying billions of dollars worth of Bitcoin weekly. They particularly employ a strategy of quickly securing available market supply by leveraging stock premiums.

On-chain data shows that Bitcoin supply is already bottoming out. Holdings in large wallets are continuously increasing. Melker analyzed, "At a point where the supply and demand imbalance is maximized, it's only a matter of time before Bitcoin's price breaks $80,000." As institutions' long-term holding tendencies strengthen, the circulating supply is expected to shrink further.

Bitcoin is entering a new price discovery phase amid historical institutional accumulation. Whether it settles above $80,000 will be a critical watershed moment determining the overall bull market for the cryptocurrency market.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*