Bitcoin Surges 4% to $109,000 as Institutional Buying Intensifies

Bitcoin's price has surged past $109,000, driven by a combination of large institutional investors and enthusiastic everyday traders. This upward trend has sparked excitement and debate among market participants, with some questioning the sustainability of the rally.

Michael Saylor, head of Strategy, has predicted that Bitcoin could reach $1 million. He believes that the growing adoption of Bitcoin and its limited daily supply will drive the price higher. Saylor points out that only about 450 Bitcoin are produced by miners each day, worth roughly $50 million. If this amount is consistently bought, the price has to go up. He noted that more public companies are buying Bitcoin, effectively absorbing this daily supply.

Strategy has accumulated a massive amount of BTC since 2020, worth over $63B. Saylor believes there’s enough evidence in the broader economy to support his ambitious forecast. He highlighted support for Bitcoin from figures like President Donald Trump and mentioned that traditional banks are preparing to offer BTC services. Saylor argued that BTC has moved past its riskiest period.

He also noted that major financial institutions like BlackRock are buying Bitcoin for their exchange-traded funds (ETFs), and even countries are starting to consider holding Bitcoin. For example, Pakistan is exploring establishing a strategic Bitcoin reserve. Some experts even suggest that the US risks falling behind if it doesn’t start accumulating Bitcoin for its reserves soon.

Bitcoin's recent surge has created a dynamic market, with both individual investors and major financial players making significant moves. The rapid rise from $105,000 to $109,000 has sparked a wave of retail buying, with sentiment hitting its second-highest FOMO level in two weeks. Data from Santiment shows traders are now in greed territory, often a precursor to market pullbacks. However, in the fast-paced world of cryptocurrency, such strong positive sentiment can sometimes lead to sudden reversals.

New data shows that whales are actively buying. For example, one wallet recently opened a high-risk trade worth over $50 million, betting on BTC’s continued rise. At the same time, nearly 1,000 Bitcoin moved out of a major exchange into unknown wallets, suggesting significant purchases by these whales. While individual traders are feeling the fear of missing out (FOMO), these whales seem to be confident in a larger price increase.

Bitcoin’s technical indicators currently show good momentum, but there are signs that buying pressure might be slowing down. If this trend continues, a small price correction could happen soon. For Bitcoin’s price to stay above $110,000, consistent high trading volume will be necessary to avoid a repeat of past rejections.