One leading indicator will let us know whether institutional interest is currently holding up Bitcoin’s price, and that metric isn’t looking too good at this very moment. According to a crypto analyst, the seven-day minting ratio is considered by some to be one of the most impeccable indicators of Bitcoin BTC tickers down $58,513 buyer activity. Well, you guessed it—off drastically over the past seven days.
“Institutions that funneled fiat into crypto through Circle took advantage of the dip below $55,000 but seem less inclined to pursue the market at current levels,” 10x Research head of research Markus Thielen explained in his Aug. 16 report.
Bitcoin has been trading under $60,000 for the past 24 hours.
Institutions may be holding out for further downfall
It’s an indicator of issuance and creation of new stablecoins, effectively a measure of how much United States dollars have been exchanged for crypto.
“Stablecoin inflows are a key sign if fiat dollars are being converted into crypto and then usually moved into coins like BTC or ETH,” Thielen told Cointelegraph.
It was a different story in early August when Bitcoin fell to $49,472:
Thielen noted that this metric “surged sharply” on Aug. 6 to $2.7 billion.
Related: Bitcoin buyers wait below $58K as Japan wipes out record stocks crash
However, it has since fallen to $1.4 billion despite Bitcoin still trading below the crucial $60,000 price level.
He says stablecoin Tether
USDT
tickers down
$1.00
“remains active”, while Circle, the issuer of USD Coin, has become “notably quiet again”.
At the time of writing, Bitcoin trades at $58 149, down 0.35% in the last 24 hours, per CoinMarketCap.
Meanwhile, futures traders believe that the asset’s price has further downside potential, with the long-to-short ratio slightly leaning toward shorts during the past 24 hours at 50.88%, according to CoinGlass.
The Crypto Fear & Greed Index has dropped another two points, showing a “Fear” score of 27 at the time of publication.
Cointelegraph recently reported that despite the recent correction to five-month lows, Bitcoin could extend its bull rally for another year.
Citing a report published by Bybit and Block Scholes, Based on Bitcoin’s ratios during the previous cycles, the bull run will extend into the third quarter of 2025.
FAQs
1. Why are institutions losing interest in Bitcoin at $58K?
Institutional investors may be losing interest due to several factors, such as overvaluation concerns, macroeconomic uncertainty, regulatory pressures, or a shift in focus to other investment opportunities with better risk-reward profiles.
2. What metrics show that institutional interest is declining?
Metrics such as reduced inflows into Bitcoin exchange-traded funds (ETFs), lower trading volumes on institutional exchanges like the CME (Chicago Mercantile Exchange), and decreased accumulation by institutional wallets can indicate waning interest.
3. How do institutional inflows affect Bitcoin’s price?
Institutional inflows typically bring large capital investments into the market, which can push Bitcoin prices higher. Conversely, when institutional demand wanes, it can lead to less upward momentum or even downward pressure on the price.
4. Could institutions return to Bitcoin if the price drops further?
Yes, institutions could re-enter the market if they view lower prices as attractive buying opportunities. Many institutions adopt long-term investment strategies and may prefer to buy Bitcoin at discounted prices.
5. What other assets might institutions be favoring over Bitcoin?
Institutions might be shifting their focus to other assets like Ethereum, altcoins, equities, or traditional safe-haven assets like gold or bonds, especially during times of market uncertainty.