Bitcoin Surges 4.25% as Institutional Demand and Saylor's Strategy Drive Market

Economist and long-time Bitcoin critic Peter Schiff recently identified two primary drivers of current Bitcoin demand. The first is the aggressive Bitcoin acquisition strategy led by Michael Saylor, which has significantly boosted market demand and sparked institutional interest. The second driver is speculators anticipating a potential U.S. Bitcoin reserve, which could ignite a Bitcoin arms race.

Schiff's observations come at a time when Bitcoin has surpassed $87,000, indicating a return of demand to the market. Strategy, under Saylor's leadership, has been continuously acquiring Bitcoin, with the latest purchase amounting to $584.1 million. This acquisition was funded through the sale of its perpetual Strife preferred stock, raising over $700 million. As a result, Strategy's Bitcoin holdings now stand at 506,137 BTC, approximately 2.4% of the total Bitcoin supply of 21 million.

Institutional interest continues to drive Bitcoin demand. The world’s largest asset manager is launching a Bitcoin exchange-traded product in Europe, building on the success of its U.S. fund that tracks the cryptocurrency. This move further underscores the growing institutional acceptance and investment in Bitcoin.

Bitcoin's recent performance has been robust, with a 4.25% surge last week, closing above $86,000. The bullish momentum continued into the new week, with Bitcoin reaching a high of $88,804 on Monday. This rally has been supported by significant inflows into Bitcoin investment products, with $724 million recorded last week following five weeks of outflows.

According to Schiff, the relief rally in Bitcoin is expected to face resistance at the 50-day Simple Moving Average (SMA) of $89,994. If this level is surpassed, it could pave the way for a rally to $95,000 and potentially $100,000. Conversely, if the price turns down from current levels, support is expected at the daily SMA 200 at $85,221 and near $83,000. A drop below $83,000 could see the Bitcoin price decline to $80,000.