Although the price of Bitcoin (BTC) has risen 23% in a week, institutional investors are just “watching” for now, the blockchain analytics firm has found. CryptoQuant.
After two months where its price hovered around $16,000-17,000, Bitcoin’s progress is now positive. It is up 2% in the last 24 hours and more than 23% in the last seven days, currently trading at $21,188. Overall, it has appreciated by 26% over the past month.
This increase is clearly visible on the 14-day price chart below, which shows an upward trend since January 11th.
However, it is still down 51% year-on-year and 69% since its all-time high reached in November 2021.
However, despite the rise in price, institutional investors still seem to be on the sidelines.
According to a CryptoQuant post published on January 15,
“Institutional investors are currently just watching and waiting. Over-the-counter transactions [over-the-counter] will likely be choppy when expecting a true uptrend reversal.”
CryptoQuant analyst MAC_D noted that observing three specific indicators – as the cryptocurrency hit $21,000 – did not show a pronounced buying trend at the institutional investor level.
- The Fund Volume Index: the level of trading volume is insignificant, and there is nothing unusual to note;
- The Fund Holdings Index: Institutions’ BTC holdings down, only prices up;
- Over-the-counter transactions: no unusual transactions took place here; the majority of transactions were carried out on exchanges; usually, at the lowest levels, institutional investors buy through over-the-counter transactions.
Given these three indicators, the analyst said, the current rally is unlikely to be a true transition to an upward trajectory.
On the contrary, adds the author,
“I think this is the result of the repression of buying sentiment, following the release of the US CPI index. Therefore, it seems better to keep calm than to get excited too soon. “
The US Bureau of Labor Statistics released the Consumer Price Index (CPI) on January 12. In particular, he indicated that the CPI for all urban consumers fell by 0.1% in December 2022, after increasing by 0.1% the previous month. The all-items index rose 6.5% for the 12-month period ending in December – the smallest 12-month increase since the period ending in October 2021.
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