Bitcoin News Today: Institutional Bitcoin Trading Volume on Coinbase Hits 75% Mark

Bitcoin's institutional trading activity on Coinbase has surged to 75% of total Bitcoin volume, signaling a significant shift in market dynamics and demonstrating growing confidence among institutional investors in the cryptocurrency as an asset class. Charles Edwards, founder of Capriole Investments, a crypto quant digital asset fund, highlighted this development, noting that the high institutional demand appears to correlate with upward price movement. “Every reading above 75% has resulted in a higher price one week later,” Edwards stated [1].

The institutional demand has also manifested in the accumulation of Bitcoin by corporate treasuries. On Tuesday alone, institutional investors added 810 BTC to their holdings, following a notable accumulation of nearly 3,000 BTC on Monday. Capriole Investments estimates that institutional "excess demand" currently stands at around 600% of the daily Bitcoin production, which is approximately 450 coins per day. This surge in buying interest comes amid a favorable macroeconomic backdrop, including cooler inflation data and expectations of a Federal Reserve rate cut in the coming months [1].

Edwards pointed to the recent US Consumer Price Index (CPI) data as a key driver of institutional interest. With inflation aligning with expectations, the market is increasingly pricing in the likelihood of a rate cut, potentially as large as 0.5%, this year. Lower interest rates typically boost risk assets, and Bitcoin has historically responded more aggressively to such macroeconomic signals. “Bitcoin has always been the fastest horse,” Edwards explained [1].

The broader institutional interest in digital assets is not limited to Bitcoin. Ethereum has also seen substantial inflows into U.S. spot ETFs, with BlackRock’s Ethereum ETF receiving a net inflow of $640 million in a single day in July. Global Ethereum futures trading volume reached $2.12 trillion in July, reflecting a 38% monthly increase. CoinGlass data further showed a 75% jump in Ethereum open interest to $5.21 billion from $2.97 billion in June [1].

On-chain metrics for Bitcoin also show signs of institutional influence. Fee volume has increased by 10.3%, and transfer volume has stabilized at $8.5 billion, indicating a more sophisticated and less speculative trading environment. These trends suggest that institutional investors are treating Bitcoin more like a traditional asset class, contributing to greater market depth and stability [2].

Despite the strong demand, market participants remain cautious. Rapid price appreciation raises concerns about sustainability, but current funding rates have not reached the levels seen in previous bull cycles, indicating that the market is not currently overleveraged [4].

The structural shift toward institutional dominance in Bitcoin trading is expected to continue as regulatory clarity improves and more financial institutions allocate capital to crypto. This trend is likely to further enhance market liquidity, reduce price volatility, and make digital assets more accessible to a broader range of investors. The increasing influence of institutional investors also has implications for market structure, as their strategies and order flow can shape broader price discovery and trading patterns [5].

The 75% institutional trading volume on Coinbase marks a pivotal moment in the evolution of the digital asset market. It reflects growing acceptance of cryptocurrencies as a legitimate asset class and highlights the increasing role of institutional investors in shaping market dynamics. As this trend continues, the market is expected to see greater alignment with traditional financial markets, signaling a new chapter in the crypto industry’s journey toward mainstream adoption.

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Source:

[1] BlockBeats News - Bitcoin Institutional Trading Volume on Coinbase Reaches 75% (https://www.theblockbeats.info/en/flash/307257)

[2] Truth Social submits amended Bitcoin spot ETF filing (https://news.futunn.com/en/post/60450301/daily-crypto-market-movements-cryptocurrency-market-volatility-bitcoin-retreats-to)

[3] Trump Media eyes Bitcoin ETF launch as BTC nears all-time high (https://www.fxstreet.com/cryptocurrencies/news/trump-media-eyes-bitcoin-etf-launch-as-btc-nears-all-time-high-202508111810)

[4] Ethereum passes $4300, making nearly all Ethereum addresses profitable (https://sherwood.news/crypto/ethereum-passes-usd4-300-making-nearly-all-ethereum-addresses-profitable/)

[5] Media Man Int on X: "Markets, Crypto and Culture August 13 (https://x.com/mediamanint/status/1955395444919730486)