On-chain data shows that Bitcoin (BTC) buyers are still dominant on exchanges despite the cryptocurrency hitting a new all-time high, which is quite unusual. Recent data from the popular on-chain analytics platform CryptoQuant shows that the 90-day Cumulative Volume Delta (CVD) remains in the bullish region, indicating continuous buying pressure.
Buyer Pressure Solidifies Bitcoin’s Record Run
BTC keeps setting record highs with strong trader support, as buyers remain in control following a 50% rise in less than two months. An analysis of the 90-day CVD by Ibrahim Cosar (a top CryptoQuant contributor) confirms buyers’ dominance over sellers during this period.
The CVD measures the difference between the sell and buy volume over three months. Sellers dominated the order until mid-March, when BTC reached a multi-month low, trading below $75,000 early last month.
Since then, the markets have been balanced before buyers regained control this month. Cosar concludes that there has been more buying pressure even as the crypto’s price traded above $110K and set a new all-time high.
Hence, he added that this could set the stage for another price rally. On-chain data shows that daily profit-taking is 50% of what it was when BTC hit $100,000 last December.
According to Glassnode, there’s stronger holding behavior this time as older coins are much less active. CryptoQuant believes BTC’s rally was fueled by short-term holders’ taking more buy positions at the $100K price.
Smart Money Drives Bitcoin’s Latest Rise
Meanwhile, Matrixport analysts noted that this Bitcoin rally is different from the previous ones because the crypto’s price has stayed above $110,000. They further stated that there isn’t a large enough retail participation to fuel the latest Bitcoin rally.
According to these analysts, institutional investors are the primary drivers of the latest BTC rally as more of them have realized that the leading cryptocurrency is a hedge against inflation and are storing more of it.
Matrixport added that there’s a quiet and steady shift in BTC demand from miners, exchanges, earlier adopters, and investors to a new category of investors (institutions), especially Michael Saylor’s strategy.
Strategy Leads the Institutional Charge in BTC Acquisition
The latest on-chain data shows that 50% of the 204 institutions that hold Bitcoin are publicly traded companies. Eleven new companies have adopted BTC into their treasuries in the last thirty days.
Despite being the largest corporate holder of BTC, Strategy has also announced fresh plans to launch a $2.1 billion Series A Perpetual Preferred Stock. According to the official statement, it aims to use the funds for general corporate purposes, which could be more Bitcoin purchases.
Strategy owns over 214,000 BTC, with a value of $23.6 billion based on the coin’s current price. Last week, the business intelligence firm purchased an additional 7,390 BTC.
Matrixport also reported that spot market accumulation, not speculative derivatives activity, is boosting the latest BTC price gains. Hence, there could be sustained price gains instead of short-term price increases.
UK Companies Join the Bitcoin Treasury Trend
In a related development, a UK-based virtual asset provider, Smarter Web Company PLC, has added 23.09 BTC to its Bitcoin treasury holdings. According to the official announcement, the purchase was made at an average price of $107,424 per BTC for $2.48 million.
With its latest acquisition, Smarter Web Company now holds 58.71 BTC at an average price of $103,671. The acquisition is part of the company’s 10-year plan, which involves a crypto treasury strategy focused on BTC.
The firm has been accepting BTC for financial settlement since 2023. Lately, there has been a shift towards crypto exposure by British companies.
Last month, another UK-listed entity, Abraxas Capital, purchased almost 3,000 BTC for $250 million. At the time of writing, the leading cryptocurrency trades at $109,384, following a 1.58% drop in its value in the past 24 hours.
While its trading volume of $64.08 billion is significant, it is still down nearly 32% over the same period.
