Bitcoin, the number 1 ranked crypto is witnessing a significant uptick in its accumulation trend. As noted by prominent data analytics platform CryptoQuant, BTC fund holdings among institutional investors have grown exponentially.
“Fund holdings” refers to the cryptocurrency assets held by institutional investors, such as private cryptocurrency funds, hedge funds, and investment entities.
In the chart below, it can be clearly seen the huge spike in the accumulation of bitcoins by these institutional entities. This sharp rise in ownership reveals a significant desire to purchase BTC, even at its current price.
The fact that these organizations are actively looking for long-term investment possibilities in Bitcoin also suggests that they have a longer-term view of investment decisions and resist the urge to react quickly unlike short-term investors who pay close attention to price changes.
Monitoring fund holdings not only provides an understanding of the market sentiment but also highlights the confidence institutional investors have in BTC as a long-term asset.
Notably, the transaction fees have also touched a peak level since May 2021.
As per statistics from the on-chain analytics firm IntoTheBlock, BTC transaction fees have risen four times than the previous quarter, the largest increase since Q2 of 2021.
The total fees for BTC in this quarter came to $186 million, a 316% increase, as can be seen in the image shared by IntoTheBlock in the tweet. Most of the increase is attributed to activities linked to ordinals.
Price-wise, Bitcoin has risen 0.41% over the previous day to trade at $30649 and is on track to post its second straight quarterly gain, tightening its hold on the cryptocurrency markets.
Bitcoin Dominance
As institutional investors embraced the soaring potential of BlackRock’s Bitcoin ETF and two other big financial services companies, BTC surged to the $30k level after recovering from the $25k region in mid-June.
Despite the inflationary pressure that has weighed on asset markets, the crypto’s dominance has increased to a 26-month high.
Additionally, institutional adoption can aid in reducing Bitcoin’s volatility, which will improve market sentiment and boost price rises.
As more institutions enter the crypto space, there will be a greater desire for a market that is more advanced and supported by decentralized finance apps. subsequently opening the door for cryptocurrency to enter more established markets.