Institutional Investors Are Still Bullish On Bitcoin


Bitcoin has seen losses in the past day after a rejection north of the $40,000 resistance. At the time of writing, the first cryptocurrency by market cap trades at $37,598 with a 5.6% loss in the 24-hour chart.

BTC with minor losses in the daily chart. Source: BTCUSD Tradingview

In the weekly chart, Bitcoin records a 21.1% profit due to a short squeeze that left traders with short positions in shambles. On the derivatives sector across all platforms, analyst Willy Woo recorded $1 billion in liquidations on July 26th.

Most of the liquidations took place on exchange Bybit with $413 million liquidated, followed by Huobi with $213 million, OKex with $207, Binance with $111 million.

Source: Willy Woo

The general sentiment in the market flipped bullish after the short squeeze which Arcane Research classified as “one for the history books”. When the price of Bitcoin jumped from $34,000 to $39,500 was bigger than the one seen in December 2017 when BTC reached $20,000.

Many experts and traders have flipped bullish. The Fear & Greed Index has gone up from Extreme Fear and now sits around the Fear area. Despite the recent bullish price action, others wonder if there are enough elements that will sustain it.

Source: Arcane Research

Additional data provided by Arcane Research indicates that institutional interest, one of Bitcoin’s main catalyzers, remains high. According to two surveys, one conducted by Goldman Sachs and the other by Fidelity, there is an “overall positive sentiment towards crypto” among these institutions.

Bitcoin Still King In The Eyes Of Institutions

Over 150 family offices from around the world took part in Goldman Sachs’ survey. 16% of the respondents said that they are already invested in Bitcoin and cryptocurrencies, with 24% of these entities based on the U.S. indicating that they hold a portion of their assets in cryptocurrencies, Arcane Research said.

Similarly, 45% of family offices on a global scale said that they aren’t invested in cryptocurrencies, but they expressed interest in the future. Family offices in Asia showed the biggest interest with 68% claiming that they have plans to invest in Bitcoin and the “digital asset ecosystem”, as seen below.

Most of the entities from the survey want to invest in cryptocurrencies due to their fear of inflation and low-interest rates. These are the primary metrics under their radar and will be of major importance to make the crypto-investment decision.

In addition, 39% of the participants said that they have not to interest in cryptocurrencies due to regulatory concerns and because they doubt Bitcoin can be an efficient store of value. Others revealed a lack of expertise and familiarity with this asset class.

Source: Arcane Research

On the other hand, Fidelity found that there is a “far wider institutional adoption of digital assets today”. In 2019, 22% of the participants for the same survey indicated that they held cryptocurrencies, 36% said the same in 2020, and 52% in 2021. 71% said to have plans to invest in cryptocurrencies and digital assets in the future.

Arcane Research concluded that the results suggest an increase in the institutional presence in the crypto industry. These major players have driven Bitcoin from $10,000 to an all-time high at $64,000 and will be key on further appreciation.

Source: Arcane Research

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