Bitcoin News Today: Institutional Bets Signal Bitcoin’s Next $1.3M Chapter

Bitcoin's price dynamics continue to attract significant attention as technical indicators and institutional activity suggest potential shifts in the market. A key concern arises from the 14-month Relative Strength Index (RSI), which has shown a bearish divergence. This divergence occurs when the RSI begins to decline while the price continues to rise, signaling a weakening bull market that might transition into a bearish trend [1]. The monthly chart indicates that while Bitcoin reached a new high during the July-August period, the RSI formed lower highs, adding to the concern that the current bull market may be nearing its end [1].

Institutional investors are playing a pivotal role in shaping the market. These investors now account for over 75% of Bitcoin trading volume on platforms like Coinbase, and their participation is historically associated with significant price movements [3]. The surge in corporate Bitcoin adoption, with 35 public companies holding over 1,000 BTC each, reflects growing institutional confidence [3]. Additionally, the approval of US spot Bitcoin ETFs has spurred strong inflows, with over $54 billion in cumulative inflows recorded [2].

Looking ahead, several factors could influence Bitcoin's price trajectory. The upcoming Bitcoin halving in 2025 is seen as a potential catalyst for price acceleration. Historically, halving events reduce Bitcoin's supply growth, which could enhance bullish momentum as demand increases [2]. Bitwise Asset Management has projected a base-case scenario where Bitcoin could reach $1.3 million by 2035, reflecting a compound annual growth rate of 28.3% over the next decade [3]. This projection outpaces traditional assets like equities, bonds, and gold [3].

Technical indicators suggest caution in the short term. Bitcoin's price dipped below the $110,000 mark, prompting traders to evaluate whether a further decline to $105,000 could present a buying opportunity [2]. The 200-day exponential moving average (EMA) stands at $103,995, offering critical support if selling pressure intensifies [2]. Meanwhile, the RSI has cooled to 40, approaching oversold levels, while the Stochastic RSI sits at 27, hinting that downward momentum may be easing [2].

Market flows indicate that traders remain optimistic about Bitcoin's future. Large block transactions, often involving institutions and high-net-worth individuals, suggest preparations for further gains [1]. Notably, December BTC call spreads targeting prices as high as $160,000 and $190,000 are gaining traction [1]. These positions reflect an anticipation of continued price gains into the year-end and beyond [1].

The macroeconomic environment also supports Bitcoin's long-term prospects. With US federal debt reaching $36.2 trillion, pressure on traditional currencies intensifies, creating favorable conditions for Bitcoin as an alternative store of value [3]. The inelastic supply of Bitcoin, combined with rising institutional demand, further strengthens its appeal. As Bitwise notes, $10,000 held in US dollars since 2015 has lost around 40% of its value, making Bitcoin an attractive hedge against inflation [3].

Source:

[1] Bitcoin May Have Topped, Warns Key Indicator, But Flows ... (https://www.coindesk.com/markets/2025/08/29/bitcoin-bull-market-may-end-early-warns-key-indicator-but-flows-continue-to-lean-bullish)

[2] Bitcoin (BTC) Price Prediction: Bitcoin Dips Below $110K ... (https://bravenewcoin.com/insights/bitcoin-btc-price-prediction-bitcoin-dips-below-110k-as-traders-watch-105k-support-for-possible-rebound)

[3] Bitwise Predicts $1.3 Million Bitcoin by 2035. Here's Why (https://coincentral.com/bitcoin-btc-price-prediction-bitwise-predicts-1-3-million-bitcoin-by-2035-heres-why/)