Despite Increased Transfer Volume And Institutional Adoption, Bitcoin Stays Below $60K 

• Bitcoin’s price hovers around $59K as increased transfer volume indicates a stable demand among investors.
• CryptoQuant data indicates buyers are absorbing the panic selling pressure around the $57K price level.
• Bitwise’s latest report suggests that institutional investors are still buying Bitcoin despite the recent price decline.

Bitcoin is up nearly 1% on Tuesday as CryptoQuant data shows buyers have been absorbing panic selling pressure since the recent market crash. This is also evidenced in Bitwise’s report, which reveals that institutional investors are still buying Bitcoin despite the recent price decline.

Bitcoin transfer volume surges as larger investors acquire more BTC

Bitcoin’s price has been hovering around $59K in the past week despite increased transfer volumes and panic selling from smaller investors. The selling pressure caused the average BTC daily trading transfer volume to rise from $650K to $765K.

According to data from CryptoQuant, the resilience in BTC’s price suggests that buyers are effectively absorbing the panic selling pressure of these smaller investors, particularly around the $57,000 price level.

This behavior also shows an increased demand for Bitcoin among larger investors who are focused on acquiring more Bitcoin at its current “attractive price.” This attitude from large holders suggests a sustained recovery may be imminent for Bitcoin.

CryptoQuant data coincides with Tether Treasury’s move to mint $1 billion USDT on the Tron blockchain. This is often interpreted as a bullish sign, as a hike in USDT supply often correlates with rising prices for Bitcoin and the crypto market.

Additionally, Bitwise’s latest report indicates that institutional investors have continued to purchase Bitcoin ETFs, undeterred by the asset’s recent price declines.

The report suggests that 10% of all Bitcoin may be owned by institutional investors, considering the latest form 13F filings from issuers indicated increasing investor interest in Bitcoin ETFs in Q2.

The total share of assets under management of Bitcoin ETFs among institutions also rose from 18.74% to 21.1%, closing the quarter with $11 billion in Bitcoin ETF holdings.