Institutional interest in Bitcoin is rising, as transactions over $100,000 have surged to new highs in 2023. This development follows the submission of recent spot ETF applications, reminiscent of the significant impact BlackRock’s ETF filing had in June. IntoTheBlock, a notable cryptocurrency analytics platform, reported on these emerging trends in the world of Bitcoin.
Levels to Watch In Bitcoin’s Journey
According to the report, Bitcoin reached a significant milestone, touching a price of $35,000 for the first time since May 2022. In 2023, BTC has recorded a remarkable gain of over 100%. This noteworthy price action has reinvigorated the crypto market, stirring up enthusiasm and suggesting that it may be entering the early stages of a bull market.
The surge in institutional activity is evident as the number of transactions over $100,000 on the Bitcoin blockchain hit its highest level in 2023. The catalyst behind this surge seems to be the influx of BTC spot ETF applications, which have piqued the interest of whales and institutional investors.
Notably, transactions exceeding the $100,000 mark had spiked in late June after BlackRock’s ETF filing, and they have now surpassed that level as BTC achieves new yearly highs. This increase in institutional activity foreshadows what could be in store for 2024.
Analyzing on-chain data, it becomes apparent that cyclical patterns align with a bullish outlook for BTC. In 2024, it is expected to undergo its next halving event, which will coincide with the expected launch of the first spot ETF. This dual development is expected to reduce miners’ selling pressure while institutions gain easier access to Bitcoin, potentially fueling demand.
A key metric known as the market value to realized value (MVRV) ratio reveals that, despite reaching yearly highs, BTC is not as overheated as it has been in previous bull markets. Historically, Bitcoin bull markets have peaked around 300%+ MVRV, whereas the current value sits at 150%. The ongoing bull market may still have room for further growth, though it is not immune to potential corrections driven by macroeconomic forces or unforeseen events.
Looking ahead, based on buying activity recorded on-chain, analysts can identify crucial price levels where Bitcoin may head next. The recent high of $35,000 marks the next resistance point for Bitcoin, with 664,000 holders buying 340,000 BTC at this level.
If this threshold is surmounted, the next concentration of trading activity lies between $38,000 and $39,000, where 333,000 BTC changed hands. Conversely, in the event of a correction, buying activity appears to be concentrated just above $30,000, where 553,000 BTC was traded.