Low-Risk Appetite Continues to Play Out in Bitcoin Market Based on Diminishing Institutional Activity

As bitcoin hovers at the $20K mark, institutional activity is still slow. This indicates a low risk appetite.

Caue Oliveira, On-Chain Analyst pointed out:

“Low institutional activity evidences de-risking movement by traditional whales. Looking at the daily trading volume in mutual funds traded in the traditional market with direct/indirect exposure to BTC, we can see the current low-risk appetite.”




Bitcoin has reached all-time heights thanks to institutional investment. BTC, for instance, reached $20K in December 2020. It had been failing to achieve this feat for three years due to the addition of institutional investors.


Institutional investments also enabled the top cryptocurrency to register the latest ATH of $69,000 last November.


Retail investors are still jumping on the Bitcoin bandwagon, based on the increase in non-zero BTC address. Market insight provider Glassnode stated:

“The number of BTC addresses holding 0.01+ Coins just reached an ATH of 10,560,930. Previous ATH of 10,560,117 was observed on 26 July 2022.”




Despite the ups and downs in the BTC markets, long-term goals are still being achieved. 


Through its weekly report dubbed “Conviction Through Confluence,” Glassnode highlighted:

“Long-term supply dynamics continue to improve, as redistribution takes place, gradually moving coins towards the hodlers. Notable supply concentrations are observable at $20K, $30K, and $40K, which tend to align with both technical and on-chain price models, making these regions significant zones of interest.”

CoinMarketCap reported that Bitcoin was trading at around $21,392 per day during intraday trades. Due to the imminent interest rate review by The Federal Reserve (Fed) Scheduled For July 27, it is still to be seen how the top cryptocurrency will perform in the short-term. 

Image source: Shutterstock



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