Bitcoin remains below $60,000 despite increased transfer volume and institutional adoption

• Bitcoin price hovers around $59,000 as increased transfer volume indicates stable demand among investors.
• CryptoQuant data indicates buyers are absorbing selling pressure around the $57,000 price level.
• Bitwise’s latest report suggests that institutional investors are still buying Bitcoin despite the recent price drop.

Bitcoin rose nearly 1% on Tuesday as data from CryptoQuant showed buyers absorbed the pressure of panic selling from the recent market crash. This is also highlighted in the Bitwise report, which reveals that institutional investors are still buying Bitcoin despite the recent price drop.

The volume of Bitcoin transfers increases as larger investors purchase more BTC

The price of Bitcoin has hovered around $59,000 over the past week despite increased transfer volumes and panic selling by smaller investors. The selling pressure caused the average daily BTC trading transfer volume to increase from $650,000 to $765,000.

According to data from CryptoQuant, BTC price resistance suggests that buyers are effectively absorbing the panic selling pressure of these smaller investors, especially around the $57,000 price level.

This behavior also shows an increased demand for Bitcoin among larger investors who are focused on buying more Bitcoin at the current “attractive price”. This attitude of large holders suggests that a sustained recovery may be imminent for Bitcoin.

The CryptoQuant data coincides with Tether Treasury’s move to hit 1 billion USDT on the Tron blockchain. This is often interpreted as an optimistic sign, as an increase in USDT supply often correlates with rising prices for Bitcoin and the crypto market.

In addition, Bitwise’s latest report indicates that institutional investors have continued to buy Bitcoin ETFs, undeterred by recent declines in the asset’s price.

The report suggests that 10% of all Bitcoin could be held by institutional investors, given that the latest Form 13F filings from issuers indicated increased investor interest in Bitcoin ETFs in Q2.

The share of total assets under management of Bitcoin ETFs among institutions also increased from 18.74% to 21.1%, ending the quarter with $11 billion in Bitcoin ETF holdings.