Bitcoin’s recent resurgence has ignited a surge in both institutional and retail investor activities. The cryptocurrency has stabilized near $34,000 after reaching its highest value since May 2022, surpassing $35,000. This represents an impressive 107% year-to-date increase, driven by mounting excitement surrounding spot exchange-traded funds (ETFs) and a surge in safe-haven demand.
During the past week, Bitcoin transactions exceeding $100,000, typically attributed to ‘whale’ investors, peaked at 23,400, marking a year-to-date high. This increased activity coincided with Blackrock’s (NYSE:BLK) ETF application, which is believed to have sparked heightened interest in Bitcoin among both institutional and whale investors, according to data from IntoTheBlock.
The Securities and Exchange Commission (SEC) is expected to greenlight several spot-based ETFs in the coming year, a development that could potentially propel Bitcoin’s market value to $42,000 or higher.
Simultaneously, data from Deutsche Digital Assets indicates that retail investor activity is also on the rise. The on-chain activity index for small entities reached a new annual high of 1.5 last week, suggesting a surge in participation from smaller investors.
This simultaneous increase in both institutional and retail participation underscores the ever-growing fascination with Bitcoin as it continues its upward trajectory. The forthcoming approval of several spot-based ETFs next year may further catalyze this activity, potentially propelling Bitcoin’s market value to new record levels.
