Bitcoin Price Hits $10,750 as Institutional Adoption Seen Rising
Bitcoin was back on the offensive Monday, overtaking the $10,700 price handle amid signs of growing institutional demand for the digital asset.
The bitcoin price reached a session high of $10,753.30 on Bitstamp, having recovered around $1,400 from last week’s swing low. At last check, the BTC/USD exchange rate was up 4% at $10,730.
With the rally, bitcoin’s relative strength index (RSI) has returned above 50. The daily RSI fell toward the low 40s last week, touching the lowest levels since February.
Bitcoin experienced a big selloff last week, decoupling from gold in the process. Despite the pullback, the digital currency has more than tripled in value since December.
At current values, bitcoin has a total market capitalization of $191.7 billion, according to CoinMarketCap. Its dominance rate continues to hold just below 69%.
Trading in BTC has picked up in the last 24 hours, but remains well below the $1 billion mark, according to Bitwise. More than $819 million worth of BTC changed hands on verified exchanges. Binance was the largest spot market for bitcoin trades at $373 million. Coinbase was second at $124.3 million.
All of the major altcoins accompanied bitcoin higher on Monday, bringing the total market capitalization closer to $280 billion. The crypto market cap plunged to around $256 billion last week.
Institutional Adoption on the Rise
As Hacked reported this weekend, demand for bitcoin appears to be rising among institutional investors. For starters, Coinbase says its institutional arm is seeing weekly inflows of between $200 million and $400 million, mostly into bitcoin. It’s not entirely clear how much of that is attributed to the recent acquisition of Xapo, but is a massive number nonetheless.
Meanwhile, Bakkt has confirmed that it plans to launch the world’s first physically-settled bitcoin futures contract next month. Although Bakkt doesn’t have many customers (yet), it still managed to raise $740 million in Series A funding. Clearly, investors are betting big on institutional money.
Bakkt is scheduled to go live September 23, more than a year after the initiative was first introduced.
There are other signs that institutional demand has already arrived. Grayscale’s Bitcoin Trust, which issues shares that track the cryptocurrency’s price, has $2.4 billion in assets under management. There are a total of 244,951,500 shares outstanding at the time of writing.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock. Charts via TradingView.