Bitcoin Struggles Below $110,000: Institutions Show Strong Interest!

Bitcoin Struggles Below $110,000: Institutions Show Strong Interest!

Bitcoin continues to remain below the $110,000 mark despite stable interest from institutional investors. Loud IT Boltwise Recent market analysis shows that demand for Bitcoin remains strong, even in the face of macroeconomic uncertainties. However, the current rally in Bitcoin's price in recent weeks has not been enough to push the price above the critical $110,000 mark.

Uncertainties in the macroeconomic environment, particularly with regard to upcoming US inflation data, continue to influence market sentiment. Additionally, recent political developments, such as President Trump's decision to postpone planned 50 percent tariffs on EU imports, have somewhat improved investor sentiment in the short term. Nevertheless, the Bitcoin price remained stable and was unable to climb above the important mark on May 26th.

Institutional investors and Bitcoin ETFs

Demand for Bitcoin ETFs is seeing impressive inflows, totaling $2.75 billion recently. Loud Changelly Institutional investors hold around 20% of all spot Bitcoin ETFs traded in the USA and therefore own over 193,000 BTC. Major institutional participants include Millennium Management, Jane Street and Goldman Sachs, all of which manage substantial assets.

One of the main attractions of these ETFs is BlackRock's iShares Bitcoin Trust, which has over 71,000 BTC in institutional ownership, as well as the Grayscale Bitcoin Trust, where 20.25% of shareholders are institutional investors. Additionally, the ARK 21Shares ETF shows the highest institutional participation at 32.8%, equivalent to approximately 17,166 BTC. Trends like these illustrate the growing confidence of institutional investors in Bitcoin as a value-preserving investment instrument.

Market developments and outlook

The Bitcoin futures market has also seen increased demand for leveraged long positions, with a current futures premium of 8% as of May 26th. For comparison: This premium was 20% in December 2024. NVIDIA's expected quarterly results on May 28th could also be crucial for future Bitcoin price movements. In addition, the Bitcoin options markets are signaling an increased probability of a future upward movement, which makes market participants optimistic.

Although there are concerns about the US national debt and the possibility of a recession could dampen market sentiment, institutional interest in Bitcoin remains stable. VanEck's survey shows an increasing correlation between inflows into Bitcoin ETFs and the price of the cryptocurrency, driven by increasing institutional adoption. These tendencies could support Bitcoin’s future uptrend and thus shape market behavior.