Bitcoin Market Splits Between Institutions and Retail, Miners as Next Rally Depends on Institutional Inflows

Bitcoin has remained stuck in a range, with institutional investors diverging from other market participants, according to a CoinDesk analysis.

CoinDesk reported on July 11 that persistent buying by some institutional investors helped keep Bitcoin trading between $65,000 and $73,000 over the past six weeks despite the war backdrop.

"Strategy and institutional investors such as U.S. spot exchange-traded funds have been the main buyers in recent weeks," CoinDesk wrote. "They are structurally buying Bitcoin regardless of investment views. They have been absorbing selling pressure in the market and supporting the lower end of the trading range."

By contrast, whale investors, mid-sized holders and mining companies have either been selling or sharply slowed the pace of accumulation. Investors holding 1,000 to 10,000 Bitcoin have recently turned net sellers, while miners are also offloading holdings as profitability worsens, the report said.

"The Bitcoin market is now being reshaped into a structure in which a small group of institutional investors is sustaining demand," CoinDesk added. "Prices rebounded on recent ceasefire news, but unless that structural trend changes, the durability of further gains will depend on continued institutional inflows."