While Bitcoin (BTC) has been consolidating between the $ 30,000 and $ 40 range for more than two months, the crypto community is waiting with bated breath for its next move.
Still, the amount invested in the Bitcoin market by institutions and companies is only a small percent of their total cash reserve.
Market analyst Lark Davis stated:
“There are around 41,000 listed companies worldwide, of which fewer than 2 dozen positions have taken positions in Bitcoin.”
He added:
“Publicly traded companies have around 10 trillion cash reserves worldwide. Around 6 billion of this was invested in BTC so that companies can leave the sinking Fiat ship. Yes, only 0.06% of the listed company money went into BTC. “
MicroStrategy, a leading American business intelligence company, got the ball rolling in the institutional BTC investment space. For example, it acquired an additional 13,005 bitcoins last month, bringing its total portfolio to 105,085 BTC.
Institutional investments were the engine of the most recent notable bull run that saw the price of Bitcoin jump from $ 20,000 in December 2020 to an all-time high (ATH) of $ 64.8,000 in mid-April.
Bitcoin funding rates for perpetual futures remain negative
According to on-chain metrics provider Glassnode:
“Bitcoin funding rates in the perpetual futures markets have been consistently negative since the May sell-off. The last time funding ratios remained negative for such a long period was March-Apr 2020. “
Although BTC funding rates remain negative, new users entering the network are on a record-breaking move, as William Clemente III admitted. The on-chain analyst pointed out:
“Bitcoin hits all-time highs with new users entering the network.”
With Visa cardholders’ crypto spending topping $ 1 billion in the first half of this year, it remains to be seen whether institutional investment will fuel the consolidating bitcoin market.
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