Bitcoin shatters records: surpasses 124,000 dollars thanks to the new wave of institutional investments

The price of Bitcoin has not yet reached 124,000 dollars, but in 2024 it hit an all-time high close to 73,000 dollars, marking a crucial moment in the evolution of cryptocurrencies.

This level reflects a growing demand from institutional investors, in a macroeconomic context that is profoundly transforming the dynamics of the sector.

According to analysts, the increase in institutional interest is a key indicator of the maturation of the cryptocurrency market. Additionally, data collected by Glassnode show that investor sentiment is at a historic high for several months, highlighting the strength of this trend.

The big investors drive the rally: the decisive role of the institutions

In recent days, investment funds, banks, and major financial players have intensified their purchases of Bitcoin, generating a very marked bullish pressure.

The bearish positions liquidated in just 24 hours have exceeded 90 million dollars (Data: CoinGlass), a figure that highlights how the market can quickly change direction when capitals of this magnitude move.

It should be noted that the extremely reduced liquidity on exchange amplifies every movement, causing significant volatility and new speculative opportunities.

Industry experts observe a direct correlation between institutional capital flow and volatility, confirming that large purchases can generate exponential impacts on prices compared to traditional markets.

The key factors driving Bitcoin towards new limits

• Supply of coins available on exchanges at a historic low: only 1.25% of Bitcoin is actively circulating on trading platforms (Data: Glassnode), favoring explosive price reactions.
• Capital inflow into Bitcoin ETFs: products like the Bitcoin Spot ETF by BlackRock have recorded over 37 billion dollars in net inflows in 2024, confirming the growing institutional interest.
• Expansion of institutional positions: companies like MicroStrategy have brought their exposure in BTC to over 5 billion dollars, while the overall institutional management in bitcoin ETFs reaches tens of billions of dollars, reinforcing the impression of a “digital gold rush.”

This particular market configuration, combined with rapid liquidations of short positions every time major resistances are broken, helps to quickly push the price towards new levels of growth.

As highlighted in the report published by CoinShares at the end of June 2024, the adoption of Bitcoin ETFs represents one of the main drivers of growth and stability in the market.

Surpassed 124,000 dollars: what does it mean for traders and investors?

The surpassing of 124,000 dollars has not yet been achieved. The area between 122,800 and 125,500 dollars remains a critical level to watch closely in the coming months, especially due to the high concentration of open “short” orders, which could easily trigger liquidations and thus significant price changes.

In the last 90 days, Bitcoin has accumulated a gain of over 18%, demonstrating investor confidence and supply scarcity acting as driving factors. Trading volume is increasing, while more and more technical patterns are emerging that suggest the persistence of the bull trend.

The macroeconomic context favors Bitcoin

The monetary policy choices and inflationary dynamics shape the strategies adopted by investors.

The latest data on U.S. inflation highlight stability or a slight slowdown in the Consumer Price Index (CPI) by mid-2024, fueling expectations for a rate cut by the Federal Reserve in the short term, with an estimated probability around 90% (Data: CME FedWatch Tool).

The weakening of bond yields is driving many investors towards riskier assets but with greater potential for returns, including Bitcoin.

In this context, the upcoming release of the Producer Price Index (PPI) will be a key data point to monitor inflationary trends and could influence the performance of cryptocurrencies.

• The evolution of the cryptocurrency market remains strongly influenced by the “momentum” generated by these macroeconomic factors, by the reaction of institutional investors and by the decisions of the main central banks.

According to the report by the International Monetary Fund (IMF), expansive monetary policies and the expected Fed rate cuts are key drivers for alternative assets including blockchain and cryptocurrencies.

The reduced supply puts the market under pressure: volatility and maximum attention

The scarcity of Bitcoin available on exchange platforms represents one of the most relevant technical elements at this stage. With such a limited share of accessible tokens, even moderate increases in demand can cause sudden and significant price jumps.

Each new high attracts not only new capital but also the attention of speculative traders and professionals. This dynamic accelerates both market instability and efficiency, making it more sensitive to any significant news or data.

FAQ – The reasons behind the historic Bitcoin rally

The Bitcoin rally is the result of a combination of elements: an extremely limited availability on exchanges, strong purchases by institutional investors, and the prospect of a more accommodative monetary policy. The synergy of these factors has generated a bull push with margins for further growth.

Analysis of liquidations: leverage increases the risk of sharp movements

Since the beginning of August 2024, the liquidations of short positions have reached significant levels, with over 90 million dollars wiped out in a single day (Data: CoinGlass). This indicates how many traders were betting on a correction that did not occur, suffering sudden losses and fueling the rally.

If Bitcoin were to surpass important thresholds like 75,000 dollars and beyond, the risk of short squeeze and sudden movements would increase significantly.

Given that Bitcoin’s volatility is historically over 60% annually according to Binance Academy, experienced traders recommend careful risk management in these market phases.

Short-term technical outlook: is the next record just around the corner?

The main technical indicators – including the increase in volumes, the breaking of fundamental resistances, and a consolidated upward trend – suggest that the bull run of Bitcoin may continue, especially if the weakness of the dollar is confirmed and interest rates are indeed reduced.

It must be said, however, that it takes little to change the scenario: unexpected macroeconomic signals or a sudden slowdown in institutional demand could trigger a phase of negative volatility in the market.

In summary: a new chapter for Bitcoin, between enthusiasm and uncertainties

The new all-time high near $73,000 in 2024 represents a significant milestone for the world of cryptocurrencies. Amid the growing pressure of liquidations, the increasingly marked interest of institutions, and a rapidly changing macroeconomic context, the future remains open to unexpected developments.

The decisions of central banks and the moves of large investors will be crucial in the coming months. The cryptocurrency landscape continues to be in the spotlight: the bull run of Bitcoin continues.