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- Institutions bought over $3.2B in Bitcoin ETFs last week, signaling strong conviction.
- Whales and long-term holders are reducing exchange activity, tightening supply.
- If momentum holds, BTC could test $134,000 in the near term.
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Bitcoin (BTC) continues its relentless climb, recently breaking past $125,000 to mark a new all-time high. The milestone has left investors questioning whether the rally has more room to run—or if the market could be nearing a short-term peak.
Institutional Inflows Signal Growing Confidence
Market analyst Joao Wedson highlighted that Bitcoin’s recent strength has been driven not by retail traders but by institutional investors. His data shows consistent weekly outflows from centralized exchanges, meaning large players are moving BTC off exchanges and into long-term storage.
Such behavior is typically a bullish sign—it indicates institutions are accumulating rather than preparing to sell. According to SosoValue, institutional inflows into Bitcoin Exchange-Traded Funds (ETFs) totaled $3.2 billion last week, marking the second-largest weekly purchase on record.
Wedson noted, “Institutions won’t stop draining exchanges,” suggesting confidence that BTC’s momentum could extend toward $134,000.
Whales and Long-Term Holders Tighten Supply
Supporting this institutional activity, data from CryptoQuant reveals a tightening supply dynamic. The Exchange Whale Ratio sits at 0.43, showing that large holders are not sending BTC to exchanges—typically a precursor to major sell-offs.
Meanwhile, Binary Coin Days Destroyed (CDD) metrics indicate that long-term holders are keeping their Bitcoin untouched. This lack of movement suggests strong conviction and reduces available supply, reinforcing bullish pressure in the market.
Can Bitcoin Sustain Its Rally?
Bitcoin’s liquidation heatmap from CoinGlass shows few unfilled orders above $125,000, implying that further upside is technically feasible. Analysts believe that if institutions maintain their buying momentum early this week, BTC could realistically test the $134,000 resistance.
However, a reversal in institutional sentiment—or renewed selling from whales—could push prices back into lower liquidity zones.
For now, Bitcoin’s path remains clear: strong demand, tightening supply, and unwavering institutional interest continue to shape a bullish narrative heading into mid-October.
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Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Bitcoin Soars 14% to $124K as U.S. Demand and Fed Shift Ignite Bullish Frenzy
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
