Here Is What Drives Bitcoin’s Positive Price Movements, According to VanEck
According to VanEck's report, Bitcoin (BTC) is poised for a potential breakout driven by 3 key reasons.
VanEck’s latest report indicates that Bitcoin (BTC) is on the brink of a significant breakout, attributed to three main factors: increasing institutional investment, miner accumulation, and flows into exchange-traded products (ETPs).
The rise in institutional adoption has strengthened the link between ETP inflows and BTC price movements. As of mid-October, U.S. BTC products experienced weekly inflows of $19.4 billion, with institutional capital playing a crucial role in influencing prices.
The findings indicate a strong correlation between ETP flows and cryptocurrency returns, reflected in an R² value of 0.3422, suggesting that institutional investments are becoming a significant driver of Bitcoin’s price. Moreover, ETP flows appear to possess some predictive capacity for post-trade performance.
Bitcoin is increasingly viewed as a “macro hedge” against economic instability, particularly among institutional investors seeking protection from inflation and market fluctuations. Additionally, U.S. miners boosted their Bitcoin holdings by 2% in September, following an 11% increase in August, showcasing their confidence in the cryptocurrency’s future value.
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Bitcoin Poised to Surpass $70,000 Amid Political Changes, Says MatrixportMarket sentiment around Bitcoin has also seen improvement, with nearly 90% of addresses currently in profit and its dominance in the crypto market rising to 57%. This reinforces Bitcoin’s position as a primary store of value within the digital asset landscape.
Despite increasing regulatory scrutiny on non-Bitcoin assets, Bitcoin remains relatively insulated, solidifying its reputation as a safer investment option. The report further notes that U.S. and European traders are significantly influencing Bitcoin’s price, with demand from these regions often counterbalancing selling pressure from Asian markets.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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Historically, the cryptocurrency industry has always carried the mission of decentralization, while the centralized regulation by governments has always been an unavoidable pressure in its development. Although each strengthening of regulation may cause the industry to experience some turbulence, the resilience and innovative capability demonstrated by the cryptocurrency industry always allow it to be reborn from the ashes.