Bitcoin is trading just above $107,000 after a modest 2% dip from intraday highs of $110,300 on Wednesday. While some see this as a short-term cool-off, the bigger picture points to growing institutional control over the Bitcoin network.
A recent report from Gemini and Glassnode reveals that centralized entities, such as exchanges, ETFs, public companies, and even governments, now hold 30.9% of the total circulating Bitcoin supply.
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Meanwhile, over 75% of Bitcoinโs adjusted transfer volume now flows through centralized exchanges, U.S. spot ETFs, and regulated derivatives platforms, a significant increase from previous years.
This increasing dominance signals a structural shift in the market. Institutions are no longer just entering, but theyโre anchoring Bitcoinโs liquidity and flow.
Macroeconomic trends still support the bullish narrative. Softer-than-expected U.S. inflation in May (just a 0.1% CPI increase) has rekindled hopes for Fed rate cuts later this year.
Some analysts believe that, combined with institutional demand, Bitcoin could still be on track for a $200,000 price target by year-end.
Why This Matters
In short, the price may be cooling, but the grip of institutions is tightening, laying a potentially bullish foundation for what comes next.
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When institutions hold more Bitcoin, it reduces supply available to everyday buyers and can stabilize price movements, potentially supporting higher prices over time.
Lower inflation can lead to hopes that the Federal Reserve will cut interest rates, which often boosts risk assets like Bitcoin as borrowing costs decrease and investment demand rises.
Institutional buying often indicates confidence in Bitcoinโs long-term value and can lead to more stable markets.
