Institutional investors have largely maintained their positions in the leading cryptocurrency despite market turbulence, aiding in the rebound of its price, according to JPMorgan, as reported by The Block.
Analysts observed that the cumulative open interest in futures on the CME, along with the positive slope of the instruments’ curve, indicates a bullish sentiment among this market segment. This is further evidenced by the premium over the spot price.
Experts believe institutional investors have several reasons to remain optimistic.
- Morgan Stanley has allowed advisors to recommend BTC-ETFs to certain clients.
- The major liquidations following the bankruptcies of Mt.Gox and Genesis are behind us, and upcoming fiat payments to FTX creditors later this year could boost demand.
- Main US political parties are signaling support for favorable cryptocurrency regulation.
Despite these drivers, experts suggest they are largely priced in.
According to analysts, the recent local low of $49,000 aligns with the bank’s estimate of the coin’s mining cost at ~$45,000.
“If Bitcoin’s price remained at this level or fell below it for an extended period, it would pressure miners. This, in turn, could increase the selling of the leading cryptocurrency,” they explained.
Experts linked the market’s downturn to “contagion” from TradFi.
They noted that retail investors initiated the negative trend—BTC-ETFs experienced one of the largest net outflows since their launch. Additionally, momentum traders played a role.
JPMorgan remains cautious about cryptocurrency prospects, despite the recent correction, considering the vulnerability of stock markets.
According to Alex Thorn from Galaxy Digital, 600,000 BTC changed hands in the range of $66,200 to $66,900, marking the largest on-chain cluster (~3% of circulating supply) after the $0-736 range.
BITCOIN IN ACCUMULATION MODE
600k BTC has changed hands between $66.2k & $66.9k, the largest price band of onchain movement since $0-736. that’s 3% of #bitcoin‘s circulating supply pic.twitter.com/GCsqTsy8Di
— Alex Thorn (@intangiblecoins) July 31, 2024
The corridor mentioned by the specialist, $0-736, refers to Satoshi-era coins, which are intentionally excluded from the sample. For the most part, they have not moved.
The top three also include bitcoins from the “FTX crash”—accumulation range $16,100–16,800.
According to CryptoQuant calculations, the balance of long-term investors’ digital gold wallets increased by 404,448 BTC ($23 billion) over the past 30 days.
Earlier, QCP Capital recorded significant purchases of December call options.