Bitcoin Hits $118,869 ATH Driven by Institutional Investors

Bitcoin (BTC) has been making headlines as it continues to reach new all-time highs (ATH), with the latest peak recorded at $118,869 on a major exchange. Despite this remarkable performance, market indicators suggest that the cryptocurrency is not experiencing the typical retail-driven hype that often accompanies such milestones. This lack of retail participation implies that there may still be significant upside potential for Bitcoin.

According to a recent analysis, Bitcoin’s current rally is characterized by the absence of retail investors. This observation is based on the Spot Retail Activity Through Trading Frequency Surge metric, which tracks the frequency of retail trading activity in the Bitcoin spot market. The analysis indicates that retail trading activity has remained subdued, even as Bitcoin continues to set new records. This trend suggests that the current bull market is primarily driven by institutional investors and exchange-traded funds (ETFs), rather than retail investors.

Historically, retail trading activity tends to surge as Bitcoin approaches or exceeds its all-time highs. The current absence of retail participation may indicate that the cycle top is still ahead. When retail investors eventually enter the market, it could mark the beginning of the final phase of the bull market. This scenario suggests that there is still room for further growth in Bitcoin’s price.

In addition to the low retail presence, other on-chain indicators suggest that Bitcoin’s current rally is not overheating. For example, the Miner Position Index has been declining since November 2024, implying reduced selling pressure from miners. Another key metric, the Market Value to Realized Value (MVRV) ratio, is holding steady around 2.2, which is below the levels observed during previous ATHs in March and December 2024. Recent analysis predicts that the next significant resistance may emerge at around $130,900.

Despite the weak selling pressure and limited retail activity, some recent exchange trends hint at the possibility of a short-term pullback. At the time of writing, Bitcoin is trading at $117,746, up an impressive 6% in the past 24 hours. This volatility underscores the dynamic nature of the cryptocurrency market and the potential for both short-term fluctuations and long-term growth.