The mass adoption of Bitcoin cannot take place without heavy institutional investors entering the crypto space.
CoinDesk just published a piece about Bitcoin breaking key resistance levels amidst the strong growing institutional interest in the crypto space.
“There seems to be a shift in the sentiment in the market compared to a few months back,” said hedge fund executive director Ulrik Lykke as cited by the online publication mentioned above.
Bitcoin’s jump above a long-term moving average, posing as resistance around $45,000, has been broken for the first time in over two months, as the same online publication notes.
The world’s largest crypto by market capitalization is currently changing hands for around $45,712 after peaking at $46,691 over the last 24 hours, CoinDesk data shows.
Prices have continued to drive higher and are now up 59% from July 21 lows of $29,500, they note as well.
Ulrik Lykke, the executive director at crypto hedge fund ARK36, told CoinDesk via email the following:
“We’ve recently seen some seemingly negative news coming out about Binance facing regulatory scrutiny that did not seem to influence the price a lot.”
Daily spot volume for August
Daily spot volume for August is also at its highest in over two weeks given the recent flurry of trading activity backed by strong demand.
“There was buying pressure from Coinbase, and I think the demand was from institutional investors,” said Ki Young Ju, CEO of the Korea-based blockchain analytics firm CryptoQuant.
Ju also said that based on the Kimichi Premium and other on-chain indicators, retail investors were mostly absent from BTC’s recent bull run.
It’s important to note the fact that the negative news has slowed down, and the tensions over the crypto tax provision in the US infrastructure bill seems to remain high.
“The bill result so far is not great, but it is going to be followed by months of united crypto lobbying,” Kyle Davies, co-founder of Three Arrows Capital, told CoinDesk today.
He reportedly continued and said: “The U.S. has seen prominent senior government officials fight on their behalf for crypto. I expect we’ll look back on this process as a great unifier that galvanized the industry.”