With Bitcoin (BTC) showing no signs of a directional bias after the recent crash, there is widespread confusion. While retail investors panic, three major institutions have purchased BTC worth nearly $100 billion in 2024. Will these developments serve as a perfect storm to kickstart a bull run?

Institutional Buying Spree Snaps Up Nearly $100 Billion BTC

Institutions have been aggressively buying Bitcoin since the ETF approval. According to data platform Arkham Intelligence, BlackRock, MicroStrategy, and Fidelity have collectively purchased ~$100B worth of BTC. 

Specifically, BlackRock, the world’s largest asset manager, alone bought $50B, while MicroStrategy, a software giant, managed to accumulate $24B worth of BTC. Fidelity stands on the low end after acquiring BTC worth $20B. This significant buying pressure, even with OTC deals, could impact BTC’s price in the ongoing bull run.

BLACKROCK BOUGHT $50 BILLION BTC IN 2024
MICROSTRATEGY BOUGHT $24 BILLION BTC
FIDELITY BOUGHT $20 BILLION BTC

Zoom out. pic.twitter.com/d2oyqtCM2z

— Arkham (@arkham) January 10, 2025

Long-Term BTC Holders’ Distribution Nears End

Glassnode data shows that long-term holders were distributing their BTC, even at prices 12% below the all-time high. However, the 30-day percent change in long-term holder supply suggests that the distribution rate has likely peaked, aka coming to an end. This development indicates that long-term holders are likely done selling

Historically, when long-term holders finish distributing their coins, the price of BTC tends to reverse the downtrend and kickstart a rally. 

LTH Long/Short-Term Holder Supply Ratio

Retail Capitulation Reaches Peak

CryptoQuant’s data on retail investors’ demand change shows peak capitulation from short-term holders. This indicator tracks retail investor volume, ranging from $0 to $10K. This indicator hit –22%, and history shows that such a steep decline in retail demand often indicates retail capitulation, which is where markets tend to bottom. 

All in all, the outlook of Bitcoin looks massively bullish, but a majority of retail investors are always caught on the wrong side. These signs often signal and allow smart traders to position themselves before a massive rally kickstarts.

What’s Next for BTC Price in 2025?

Here’s a crypto analyst’s take on why Bitcoin price could be forming a bottom around $90K to $91K, signaling the next leg of bull run.

Is Bitcon Bottom In? Most likely.

January 9’s swing low ($91,151) could be the bottom. If not, then a sweep of $90,835 with a bullish swing failure pattern could suggest that a bottom is imminent.
https://t.co/H2Spj0mvEM pic.twitter.com/ohZ0zmlIsB

— MAXPAIN (@Mangyek0) January 10, 2025

If this outlook is true, and Bitcoin is forming a bottom, it could be preparing to resume the uptrend and explore new highs. Here are some targets for this next phase as noted in our 2025’s bold Bitcoin price predictions, the cycle top could form anywhere between $150,00 to $250,000. 

“CMT Analyst Adrian Zduńczyk is a firm believer that Bitcoin will peak at around $225,000 this cycle and is expecting BTC to transition from optimism to a belief phase.”

Furthermore, several institutions and banks are also expecting a similar move from BTC in 2025. 

“Standard Chartered expects BTC price to hit a peak of $250,000 in 2025. Geoff Kendrick, the bank’s head of digital asset research, noted that spot Bitcoin ETF flows could hit $50 to $100 billion by 2026. Fundstrat Global Advisors’ Tom Lee also shares this outlook.”

Conclusion

The convergence of institutional buying, long-term holders finishing their distribution, and retail investors’ capitulation is a perfect storm, signaling a bottom and an impending significant Bitcoin price rally. As institutions continue to invest in BTC, the stage is set for a potential bull run, with some analysts predicting a cycle top between $150,000 and $250,000.

Frequently Asked Questions (FAQs)

BlackRock, MicroStrategy, and Fidelity have collectively purchased ~$100B worth of BTC.

It suggests that long-term holders are done selling, and the supply distribution is nearing its end.

Some analysts predict a cycle top between $150,000 to $250,000.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.