The cryptocurrency market is not unfamiliar with volatility, with price corrections and market fluctuations often making the news. But even with the recent pullbacks in the price of Bitcoin ($BTC), the leading cryptocurrency shows some impressive resilience, particularly when you consider that its market cap just hit an all-time high (ATH) of $857 billion. This new milestone emphasizes the ongoing bull cycle’s strength and suggests that, even with market corrections, Bitcoin remains in a growth trajectory that could be called solid, if not stellar. This report is just from one of the Sovereign Wealth Funds (Mubadala) in AD. There are a few other SWFs in AD. https://t.co/un1V9IgGHK — CZ BNB (@cz_binance) February 14, 2025 Long-Term Holders Cashing Out While New Investors Step In Bitcoin’s realized market cap is a vital measure that shows us the sweet, sweet value of Bitcoin currently in circulation. Reaching a new all-time high in the last week of June, this metric indicates that Bitcoin holders are loving life, for the most part, as the price climbs even with some price action seen over the last couple of weeks that’s not so sweet. But like anything that’s not so sweet, it reeks of opportunity, and more and more Bitcoin holders appear to be finding it, cashing out at favorably higher levels than we seemed to be encountering even a month ago. While long-term holders are cashing out, new investors are stepping in and absorbing the selling pressure. Consequently, they are helping to sustain and maintain Bitcoin’s price. The influx of this new capital into Bitcoin serves as a critical support factor in maintaining upward price momentum in the cryptocurrency markets, as some high-net-worth individuals (referred to colloquially as “whales”) choose to take profits. New investor interest certainly bodes well for the price of Bitcoin in the short term. This report is just from one of the Sovereign Wealth Funds (Mubadala) in AD. There are a few other SWFs in AD. https://t.co/un1V9IgGHK — CZ BNB (@cz_binance) February 14, 2025 Institutional Involvement: Wealth Funds and ETF Trends The allure of Bitcoin is also expanding well beyond retail investors. For instance, Changpeng Zhao (CZ), the CEO of Binance, recently verified that numerous wealth funds and other institutional players, well-established in Abu Dhabi and elsewhere, are very much in the Bitcoin buying scene. This move marks a notable transition in the asset class judgment of Bitcoin. Institutional investors seem to be taking a shine to the idea of holding Bitcoin as a store of wealth and a portfolio diversifier. The consumption by wealth funds of “up to 500” BTC at a time is a pretty big deal, and could, if it keeps up, serve to make the Bitcoin market a bit more stable without losing its edge as a risk asset. A primary force behind the growing institutional interest appears to be the Bitcoin Spot ETF. It offers a mechanism for investors to gain exposure to Bitcoin without holding the actual asset. However, on February 13, Bitcoin Spot ETFs experienced their fourth consecutive day of outflows—this time totaling $157 million. If you ask me, this is obviously not a good look for the funds trying to track the price of Bitcoin. And though it is undoubtedly part of a broader market cycle when money flows into and out of various investment vehicles, it caught my eye because I am trying to keep a pulse on how these ETFs are being received by the investing public. On February 13, Bitcoin spot ETF had a total net outflow of $157 million yesterday, continuing the net outflow for 4 consecutive days. HODL conducted a 1-for-4 stock split after the market yesterday. Ethereum spot ETF had a total net inflow of $12.9192 million.… pic.twitter.com/bsSR6JOPXG — Wu Blockchain (@WuBlockchain) February 14, 2025 HODL’s Stock Split and Its Market Implications On the same day as the ETF outflows, a prominent Bitcoin-focused investment firm, HODL, conducted a 1-for-4 stock split after the market closed on February 13. Stock splits are often seen as a positive sign, indicating that the company is confident in its future growth prospects. This split also aligns with another positive Bitcoin indicator: accessibility. A share price that is roughly half what it was before the split makes shares more accessible. To potential investors, investing in an asset whose price is relatively low suggests that the asset itself is either at a discount or is set to appreciate significantly. In the Bitcoin market, that kind of confidence should not be taken lightly. Net outflows from Bitcoin ETFs might appear, on the surface, to be a potential short-term bearish sign. But when you dig into the numbers, there’s a lot more going on beneath the surface. For one thing, even with these ETF outflows, CME Bitcoin futures (which are used to price the ETFs) have seen record open interest. As such, there are actual, real-world Bitcoin stakeholders who are fortifying Bitcoin’s fundamentals. These stakeholders are steadfast. Conclusion: The Bull Cycle Continues To sum up, the ongoing bull cycle clearly remains intact, with Bitcoin’s realized market cap recently hitting a new ATH of $857 billion, despite some short-term price corrections and ETF outflows. Gains are being realized by long-term holders, and the market is being bolstered by the entry of new investors. The picture of Bitcoin’s Momentum Pricing remains largely intact, and the appearance of institutional interest in wealth funds, among others, adds another layer of strength to its Momentum Price and brings Bitcoin even further into the mainstream financial landscape. Despite experiencing short-term volatility and outflows, Bitcoin is steadily building momentum. Accumulation by both retail and institutional investors signals the kind of sustained growth that serious assets tend to demonstrate. When one looks at Bitcoin’s pricing through the lens of its realized market capitalization, however, it becomes clear that Bitcoin is doing something rare these days—namely, it’s in the process of becoming, if not a “safe haven,” then at least a haven. Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services. Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news ! Image Source: beibeinside / 123RF // Image Effects by Colorcinch
