Bitcoin Institutional Demand Absorbs Five Times Daily Mining Supply, Echoing Past Rallies
Summary
- Charles Edwards said institutional capital is absorbing more than 500%% of Bitcoin’s daily mining output.
- Edwards said this supply-demand structure produced an average one-month return of about 24%% when it appeared in the past.
- He also said that, based on the current price, Bitcoin could rise to about $96,000.
Forecast Trend Report by Period
Bitcoin is showing strong demand from institutional investors, according to market analysis. Traders are focusing on the pattern because similar periods in the past were followed by short-term gains.
On May 4, Capriole Investments founder Charles Edwards wrote on X, formerly Twitter, that institutional capital is absorbing more than 500% of Bitcoin’s daily mining output.
Edwards said the same supply-demand structure has appeared repeatedly in the past. In those periods, Bitcoin went on to rise over a short stretch. Based on historical cases, the average one-month return was about 24%.
Applied to the current price, that would imply Bitcoin could climb to about $96,000.
Market participants say a setup in which institutional demand far exceeds newly mined supply could add to near-term upside pressure. Still, the estimate is based on historical averages, and actual price moves may differ depending on market conditions.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
