BTC price to rise due to institutional demand

The following are key points.

• Coinbase’s institutional Bitcoin trade volume reaches 75%. This has historically led to a rise in the BTC value a week after.

• The amount of Bitcoin mined each day is far less than what institutions are purchasing.

• As the US economy improves, risk assets find new reasons to be bullish.

BitcoinBTCNew analysis suggests that ) will see new gains in the next week, as institutional buyers increase their BTC purchases.

It is a good idea to get in touch with someone who can help you. X post Charles Edwards, the founder of Capriole Investments’ crypto quantitative digital assets fund, pointed Wednesday to the massive outflows that have been seen from US-based exchange Coinbase.

BTC prices should rise again due to institutional investors

As US inflation slows down and interest rates drop next month, Bitcoin will once again be a popular target among institutional investors.

Capriole showed Tuesday that institutional players accounted for 75% (or more) of Coinbase’s trading volume.

“All readings above 75% have seen higher prices one week later,” He noted.

Capriole Calculates Institutional “excess demand” This week, the daily mining of 450 BTC has increased by 600%.

Bitcoin corporate treasurers alone added 810 BTC on Tuesday. The Monday total, which was nearly 3,000 BTC, was also higher.

The Fed’s optimism about rate cuts has benefited Bitcoin.

These moves are accompanied by lower-than-expected US Consumer Price Index data (CPI), for July, and August. BTC price push toward all-time highs.

Related: Ethereum hits new multiyear high as Tom Lee’s BitMine plans $20B ETH raise

Ask why Institutions “went crazy” Edwards called attention specifically to the interest rate outlook.

“Because yesterday inflation was as expected, which means it’s a certainty the Fed will cut rates next month, and probably 3 times this year,” He wrote. 

“Market is now assessing possibility of a large 0.5% cut even, given the poor job backdrop. Rates down = risk assets up, and Bitcoin is the fastest horse historically.”

CME Group: Latest data FedWatch Tool Markets are expecting a September cut of 0.25%.

“Market-implied cuts for 2025 were unchanged following the release, with pricing still reflecting around 60bps of rate cuts,” In the most recent edition of QCP Capital’s monthly newsletter, QCP Capital noted that CPI has been reacting in a similar way to what it was before. Asia Color Market updates 

“The terminal rate has also held steady, despite a softer labour market and expectations for a more dovish Fed Chair in 2026. Futures positioning suggests investors see 3% as the Fed’s floor in 2026.”

QCP is looking forward to Jackson Hole’s symposium next week for more clues about the Fed’s future moves.

The article is not intended to provide investment advice. Risk is inherent in every investment decision and trade. The reader should always do research prior to making a final decision.