Bitcoin Institutions Are “Buying Like There’s No Tomorrow” – Will Prices Surge? Find Out!

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Key Points:

  • Coinbase’s institutional Bitcoin trading volume hits 75%, a sign that BTC prices tend to rise shortly after.

  • Institutions are currently buying more Bitcoin than what is mined daily. Is this the start of something big?

  • Risk assets are finding their mojo again, as US economic outlook gets a bit more optimistic.

Bitcoin (BTC) may soon experience a surge in value as institutions seem to be gobbling up more Bitcoin than ever, according to a rather bullish prediction from a recent analysis.

On Wednesday, Charles Edwards, the founder of Capriole Investments, shared his thoughts on X about the “booming” outflows from Coinbase, which is being largely driven by institutional investors. The numbers are showing that Bitcoin may just be on the cusp of its next big price leap. 📈

Analysis: Institutions to Spark Fresh BTC Price Gains?

It appears that Bitcoin is once again in favor with institutional investors, especially with US inflation cooling off and predictions for lower interest rates next month. 💸

Data from Capriole revealed that on Tuesday, a staggering 75% of Coinbase’s volume came from institutional investors. For those keeping track, historically, anything above 75% has led to a price increase a week later. 😏

Capriole has calculated that institutional “excess demand” this week is 600% of the approximately 450 BTC mined daily. Yes, you read that right-600%! 🤑

Corporate Bitcoin treasuries weren’t left behind either, with 810 BTC added on Tuesday alone, and Monday saw an even more impressive figure of nearly 3,000 BTC. Just imagine the size of their wallets! 🏦

Bitcoin Rides the Wave of Fed Rate-Cut Optimism

The market’s optimism is further fueled by lower-than-expected US Consumer Price Index (CPI) data for July and Bitcoin’s price starting to climb towards all-time highs. 🚀

When asked about the sudden surge in institutional interest, Edwards pointed to the outlook for interest rates, noting that because inflation came in as expected, it is now a near certainty that the Fed will cut rates next month. Oh, and probably three times this year. 😲

“The market is now pondering a potential 0.5% rate cut, especially with the weak job market. Lower rates = higher risk assets, and Bitcoin has historically been the fastest horse in this race.”

The latest data from CME Group’s FedWatch Tool shows that markets overwhelmingly expect a 0.25% cut in September. Is this the calm before the storm? ⚡️

QCP Capital also pointed out that market-implied cuts for 2025 remain unchanged, with investors eyeing a 3% floor for the Fed’s rates in 2026. Let’s see if this turns out to be a bet they’ll regret… or a windfall. 🤞

“The terminal rate is holding steady, even with the softer labor market and expectations for a more dovish Fed Chair in 2026.”

Looking ahead, QCP is eagerly awaiting next week’s Jackson Hole symposium for more clues about the Fed’s next move. Stay tuned, folks! 📅

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2025-08-13 16:44