"Bitcoin fell to $114,000, but... institutional buying and on-chain indicators remain positive"

Bitcoin has dropped to the $114,000 level, raising concerns in the market. However, as on-chain indicators and institutional buying continue, some analyses suggest the structural bullish trend remains intact.

On the 2nd (local time), cryptocurrency news outlet Coinpedia reported, "Bitcoin fell as low as $114,000 following the U.S. Securities and Exchange Commission (SEC)'s announcement of the 'Project Crypto' plan, increasing concerns about the overall economy," adding, "Despite the decline, the market still holds a strong position."

According to the outlet, the premium on CME Bitcoin and Ethereum futures remains above 8%. This indicates that institution-driven arbitrage (carry trade) is active and there are no signs yet of large investors exiting.

Also, the M2 indicator, which represents global liquidity, is on the rise, and its strong correlation with Bitcoin's price leaves open the possibility of a rebound in the future. The 'Pi Cycle Top' indicator, which estimates price peaks, has not yet shown any signs of overheating in the market.

Institutional investors also see the decline as a buying opportunity. Strategy (formerly MicroStrategy) increased its holdings by 20% in the second quarter and now owns a total of 628,800 BTC. It also announced plans to raise additional funding worth $4.2 billion. BlackRock's spot Bitcoin ETF, IBIT, recently attracted one million new investors, recording $87 billion in inflows. Coinbase was also reported to have purchased an additional 259 BTC.

According to a recent Deloitte survey, 99% of CFOs at companies with more than $1 billion in assets plan to use cryptocurrencies for the long term. Among them, 40% responded they intended to use it for payment or investment within two years.

The outlet analyzed, "The bullish rally that continued until last month has lost some steam, but it is too early to conclude that this correction will lead to a structural downtrend," adding, "The upcoming Federal Reserve meeting on the 7th and the CPI release on the 12th will be key variables that determine the market direction."