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Solid Exchange Data Shows That Big U.S. Institutions Are Driving This Bitcoin Rally

Press Releases Crypto News Bitcoinist Solid Exchange Data Shows That Big U.S. Institutions Are Driving This Bitcoin Rally

Bitcoin (BTC) rallied over 10% in the past week, extending gains and reaching levels not seen since the Terra collapse in May 2022. This surge is attributed to increased institutional activity, particularly in the United States.

Average Bitcoin Trade Size Rising In U.S. Exchanges

According to Kaiko data on December 5, the average trade size on United States exchanges like Coinbase, Bitstamp, and Kraken has rapidly risen since September 2023. If this data guides, it indicates that institutions are making larger block trades, doubling down on Bitcoin.

BTC average buy size | Source: Kaiko

The increase in average trade size coincides with the expected approval of the first batch of Bitcoin ETFs in the United States. In the coming weeks, the Securities and Exchange Commission (SEC) will rule on several Bitcoin ETF applications, including those made by BlackRock and Fidelity. Analysts predict the SEC will authorize multiple derivatives in early Q1 2024.

Analysts view the green lighting of the spot Bitcoin ETFs as a significant catalyst for institutional adoption of Bitcoin and crypto, validating coins as a new asset class. Authorizing these complex derivatives would provide institutions with a regulated and accessible way to get exposure in Bitcoin, reducing hurdles that have previously held them back.

Shift In Monetary Policy, Tapering Volatility Driving BTC Demand

Besides the ETF anticipation, the improving risk environment contributes to Bitcoin’s rally. The USD has been weakening over the past few months. At the same time, risk-free rates have stabilized, making Bitcoin a more attractive investment.

Last year, as the

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Author: Dalmas Ngetich

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