U.S. institutions propel Bitcoin rally, but bears may lurk below
Bitcoin's U.S. institutional interest continues to drive growth, but is there trouble brewing?
- U.S. institutions are purchasing BTC at a higher rate than their non-U.S. counterparts.
- BTC stands at a pivotal point, with significant liquidity levels positioned both above and below its current price.
Despite a 2.36% drop over the past week, Bitcoin [BTC] has managed to hold above the $100,000 region at press time.
The growing interest from U.S. institutions and limited adoption by non-U.S. entities present an opportunity for further price increases.
Institutional demand boosts BTC
According to CryptoQuant, there has been a surge in interest among U.S. institutions—including exchanges, funds, and banks—in BTC, which has been a key driver of its growth.
This has led the percentage of BTC held by U.S. institutional investors to remain higher compared to non-U.S. peers.
This interest may be attributed to favorable crypto policies implemented by President Donald Trump’s administration.
This metric also indicates the possibility of further BTC growth, particularly if non-U.S. entities begin purchasing the asset as regulatory clarity and positive policies improve in their region.
AMBCrypto analysis revealed that while U.S. institutions are purchasing, U.S. retail investors are not bullish on BTC. Instead, they are selling.
This finding was determined through the Coinbase Premium Index, which tracks buying or selling activity among U.S. retail investors by comparing Coinbase activities to other cryptocurrency exchanges.
When positive, it suggests a bullish scenario; when negative, it indicates a bearish outlook.
At the time of writing, the index showed a reading of negative 0.04, meaning U.S. retail investors are selling BTC. This may be due to several factors, including the current market downturn.
If retail investors begin buying BTC and interest among non-U.S. crypto entities spikes, BTC could gain sufficient momentum for further price increases.
Where will BTC go next?
BTC’s market direction is a two-way street—it could either trend higher or lower, with liquidity levels lying above and below current prices.
Read Bitcoin’s [BTC] Price Prediction 2025–2026
Above the chart, liquidity levels range between $107,234 and $108,257.70. Below, they range from $97,530.40 to $94,598.80. These levels are significant for BTC’s next move, as liquidity tends to act as a price magnet.
Based on current market sentiment, which is slightly bearish, BTC could potentially drop to the lower liquidity region before bouncing back to the upside and continuing its price movement forward.
