Bitcoin Falls from New Highs But Bulls Target $150K

The key takeaways

• A weekly ETF flow of over $3.5 billion, and an exchange balance at its lowest level in 5 years highlight renewed confidence among institutions in Bitcoin.

• A healthy open futures market and the continued BTC adoption indicate that traders are expecting Bitcoin to surpass $150,000 very soon.

BitcoinBTC() experienced a correction of 4.2% Tuesday, after hitting an all-time record high of $126,219 the day before. This was a somewhat anticipated move following a gain by 12.5% over the past week. Bitcoin derivatives as well as institutional flows point towards further gains. Despite traders’ fears of a more severe pullback due to the uncertainty surrounding global economic prospects, they still indicate a possible increase in price.

Bitcoin monthly futures The premium is 8% compared with regular spot market prices, and the spread falls comfortably between 5% and 10%. During periods of high confidence, this spread can rise above 20%. This is due to the demand for bullish leveraged positions. In contrast, bearish markets usually pull the indicator below 5% or even into negative territory — clearly not the case now.

The lack of confidence of derivative traders might seem negative at first, but this actually lowers the likelihood of cascading liquidity if Bitcoin prices continue to drop. The data also strongly suggest that the rise in Bitcoin’s price after the crash was not a one-off. $109,000 retest The real money that poured in on September 26 drove it, and not speculators. The bulls will be more convinced the longer Bitcoin stays above $120,000.

Bitcoin market is boosted by institutional and corporate inflows

Bitcoin’s role as digital currency is cemented by its institutional adoption. Regardless of when a new all-time high is reached, Bitcoin has already gained 31% year-to-date in 2025, far outpacing the S&P 500’s 14% increase. The net flows of listed Bitcoin products are a good indicator of institutional interest.

Total assets managed reached $195.2 Billion, thanks to the $3.55 Billion in net weekly inflows of Bitcoin ETFs and exchange traded products. This is a sign that institutional investment in Bitcoin has been growing. To compare, silver-backed listed instruments with market capitalizations similar to Bitcoin’s total around $40 billion.

Bitcoin investment companies BTC continues to be bought by companies like Strategy and Metaplanet as reserve assets, confirming its independent status. OranjeBTC a Brazilian firm, started trading on the stock markets on Tuesday. The company had 3,675 BTC valued at over $445 Million at current exchange rates.

Bitcoin Exchange Reserves Fall to 5-Year Low

Bitcoin deposit levels on exchanges are at their lowest level in five years. This indicates a reduction of the supply that is available to sell immediately. Glassnode estimated total exchange balances to be 2.38 million BTC. This is down from 2,99 million BTC one month ago. The declining exchange balances indicate that even if there are still large buyers who can access the supply via over-the counter (OTC), accumulation is continuing.

Reduced Bitcoin deposits and derivatives markets’ resilience  favor bullish momentum

Bitcoin futures’ open interest on major exchanges stands at $72 Billion, down by 2% but at a healthy level. The deep liquidity derivatives market Even when short positions are demanded, it is important to attract hedge funds from around the world.

Bitcoin’s positive momentum is likely to depend on decreasing risks associated with excessive stock valuations. Oracle shares (ORCL), which were dumping on Tuesday, came after the company’s earnings report. reports After revealing that the margins of the cloud servers it rents to the artificial intelligence industry were shrinking, the company revealed its concerns.

While a consolidation is possible in the short term, there are still bulls who target higher prices due to continued institutional adoption and strength of Bitcoin derivatives. $150,000 or more by year-end.

This is not a legal or investment advisory article. It is only intended as a general guide. This article is solely for informational purposes. It does not represent or reflect Cointelegraph’s views.