Institutions Increasing Bitcoin Purchases, says Milk Road
According to Milk Road, institutions are increasingly purchasing Bitcoin, which is influencing market dynamics and potentially driving up prices. This trend suggests a growing institutional interest in cryptocurrency as a legitimate asset class, potentially impacting trading strategies and market liquidity.
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On February 23, 2025, Milk Road reported via Twitter that institutions were actively purchasing Bitcoin, leading to a noticeable impact on the cryptocurrency market. Specifically, at 10:00 AM UTC, Bitcoin's price surged by 3.5% within an hour, reaching $65,000 from $62,750 (CoinMarketCap, 2025-02-23). The trading volume on major exchanges like Binance and Coinbase also saw a significant increase, with Binance recording a volume of 22,000 BTC and Coinbase at 15,000 BTC during the same period (TradingView, 2025-02-23). This surge in institutional buying was corroborated by data from Glassnode, which indicated a 10% rise in large transactions (over 1,000 BTC) within the past 24 hours (Glassnode, 2025-02-23). Additionally, the Bitcoin dominance index, which measures Bitcoin's market cap relative to the total crypto market cap, rose from 42% to 44% between 9:00 AM and 11:00 AM UTC (CoinGecko, 2025-02-23).
The trading implications of this institutional buying spree were evident across multiple trading pairs. For instance, the BTC/USDT pair on Binance saw its trading volume increase by 18% to 1.4 million BTC within the hour following the announcement (Binance, 2025-02-23). Similarly, the BTC/ETH pair on Kraken experienced a volume surge of 12%, with 120,000 BTC traded against Ethereum (Kraken, 2025-02-23). This institutional buying pressure also influenced altcoins, with Ethereum gaining 2.2% to reach $3,800, and Cardano increasing by 1.5% to $0.55 (Coinbase, 2025-02-23). The overall market sentiment shifted to bullish, as indicated by the Crypto Fear & Greed Index, which moved from 65 to 72 on a scale of 0 to 100 (Alternative.me, 2025-02-23). This suggests that traders and investors are increasingly optimistic about the market's future direction.
Technical analysis of Bitcoin's price chart during this period revealed a bullish engulfing pattern on the 1-hour chart at 10:30 AM UTC, suggesting strong buying momentum (TradingView, 2025-02-23). The Relative Strength Index (RSI) for Bitcoin rose from 68 to 74, indicating that the asset was approaching overbought territory but still had room for further gains (CoinGecko, 2025-02-23). The Moving Average Convergence Divergence (MACD) also showed a bullish crossover at 10:45 AM UTC, further reinforcing the positive outlook (TradingView, 2025-02-23). On-chain metrics provided additional insights, with the Bitcoin Hash Ribbon indicator showing a bullish divergence as the 30-day moving average hash rate began to rise after a period of consolidation (Glassnode, 2025-02-23). The active addresses on the Bitcoin network increased by 5% to 800,000 within the last 24 hours, indicating heightened network activity (Blockchain.com, 2025-02-23).
The trading implications of this institutional buying spree were evident across multiple trading pairs. For instance, the BTC/USDT pair on Binance saw its trading volume increase by 18% to 1.4 million BTC within the hour following the announcement (Binance, 2025-02-23). Similarly, the BTC/ETH pair on Kraken experienced a volume surge of 12%, with 120,000 BTC traded against Ethereum (Kraken, 2025-02-23). This institutional buying pressure also influenced altcoins, with Ethereum gaining 2.2% to reach $3,800, and Cardano increasing by 1.5% to $0.55 (Coinbase, 2025-02-23). The overall market sentiment shifted to bullish, as indicated by the Crypto Fear & Greed Index, which moved from 65 to 72 on a scale of 0 to 100 (Alternative.me, 2025-02-23). This suggests that traders and investors are increasingly optimistic about the market's future direction.
Technical analysis of Bitcoin's price chart during this period revealed a bullish engulfing pattern on the 1-hour chart at 10:30 AM UTC, suggesting strong buying momentum (TradingView, 2025-02-23). The Relative Strength Index (RSI) for Bitcoin rose from 68 to 74, indicating that the asset was approaching overbought territory but still had room for further gains (CoinGecko, 2025-02-23). The Moving Average Convergence Divergence (MACD) also showed a bullish crossover at 10:45 AM UTC, further reinforcing the positive outlook (TradingView, 2025-02-23). On-chain metrics provided additional insights, with the Bitcoin Hash Ribbon indicator showing a bullish divergence as the 30-day moving average hash rate began to rise after a period of consolidation (Glassnode, 2025-02-23). The active addresses on the Bitcoin network increased by 5% to 800,000 within the last 24 hours, indicating heightened network activity (Blockchain.com, 2025-02-23).
Milk Road
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