Key Points
- Bitcoin is increasingly being seen as a store of value with major institutions betting on its future.
- Massive amounts of USDT are flooding the market, indicating signs of liquidity.
Bitcoin’s status as a store of value is growing, with major institutions placing bets on its future. The cryptocurrency’s fixed supply of 21 million coins is a key factor in this trend.
Institutional Interest in Bitcoin
A report by financial intelligence firm River highlighted the ownership of Bitcoin across key stakeholders. The evolution of the derivative markets since the last presidential election, with Open Interest hitting a record $45 billion, has been crucial.
Institutional interest provides long-term security and helps absorb speculative swings. Over the last 24 hours, $36.28 million in liquidations occurred, with $25.20 million in short positions closing.
Liquidity and Market Conditions
In contrast to previous cycles where USDT market dominance fluctuated, its dominance has steadily fallen this time. Despite Bitcoin entering a high-risk zone, the dominance showed consistent red bands, hitting a daily low of 6% on Election Day.
Tether’s Treasury recently minted 1 billion USDT tokens in response to the current market conditions, with Bitcoin emerging as a safer asset. However, the market may be overheating, with the RSI indicating an overbought condition.
Despite potential short-term sell-offs, the overall market sentiment points to a rally to $80k before the end of the month. This trend is supported by the rising uncertainty around ‘Trump trades’, making Bitcoin a safer bet than equities and bolstering institutional interest.
