Bitcoin’s been doing its own thing lately, with prices and key numbers changing even as the whole crypto world is still pretty volatile. Good news is emerging though, and Bitcoin’s climbing back towards $85,000.
Institutional Investors Slow Down
Bitcoin’s price is rising thanks to growing optimism. But before this recent price jump, something interesting happened: CME (Chicago Mercantile Exchange) open interest for Bitcoin dropped a lot. This means big institutional investors are trading less. One platform, Alphractal, pointed out this drop is the biggest Bitcoin’s ever seen! This suggests investors are being cautious because of market uncertainty and price swings. A drop in open interest usually means some investors are selling off. This drop happening alongside
a price increase suggests the market might be calming down after a bearish period.
Looking at the numbers, the 90-day drop in open interest is a massive $10 billion! That’s a huge amount of institutional selling over three months. However, the 30-day and 7-day numbers tell a different story. The 30-day drop has stopped, and the 7-day number is actually going up. So, while the medium-term outlook (based on the 90-day data) is still a bit pessimistic, the short-term picture shows things consolidating. This means less selling pressure in the short term, even if the overall trend is still bearish. Everyone’s watching closely to see what happens next.
Big Players Are Still Buying
Despite the drop in institutional trading, some really big Bitcoin players (whales) are still buying. Data shows that addresses holding at least 1,000 BTC are actively accumulating more. This shows strong belief in Bitcoin’s long-term future. These whales have bought a million BTC since November 2024, and they’ve been especially active recently, buying 200,000 BTC this month alone. This consistent buying shows strong demand from institutional and wealthy investors./p>
