"Bitcoin institutional buying indicator turns positive at $88,000… historical average return 109%"
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Summary
- Cointelegraph reported that institutional investors' Bitcoin net buying indicator turned positive after surpassing $88,000.
- It said the indicator turning positive means institutional purchases exceeded mining supply.
- According to historical data, Bitcoin's price has on average risen 109% after this signal, and the market is watching for a short-term rebound.
A key indicator showing institutional flows into Bitcoin (BTC) has turned positive again. As a phase in which institutional buying exceeds mining supply has reoccurred, expectations for a mid-term price rebound have also been raised.
On the 6th, crypto media Cointelegraph reported that "the 'Net Institutional Buying' indicator of asset manager Capriole Investments recorded eight consecutive green signals this year." The indicator turned positive after Bitcoin's price surpassed the $88,000 level.
This means that the daily purchases by institutional investors, including corporate treasuries and U.S. spot Bitcoin exchange-traded funds (ETFs), exceeded the newly supplied Bitcoin quantity from mining. After a slowdown in demand and increased volatility earlier this year, institutional demand appears to have entered a recovery phase. Recently, institutions have net bought about 76% more Bitcoin compared to mining supply.
Charles Edwards, founder of Capriole Investments, said, "Institutions have once again become net buyers of Bitcoin," adding, "Looking at historical data, after this indicator turns positive Bitcoin's price has shown a meaningful upward trend."
In fact, the indicator has acted as a bullish signal several times since 2020. After phases in which institutional buying exceeded mining supply, Bitcoin's price rose by an average of 109%, and the previous instance also showed an increase of about 41%.
Meanwhile, Bitcoin's price recovered to the $94,000 level after the U.S. stock market opened earlier this week, reaching the highest level since mid-November last year. The market is paying attention to whether the flow will continue after a short-term rebound alongside the recovery in institutional demand.
