-0.07%
Bitcoin’s (BTC) price broke above the February 2023 highs of $25,200 after U.S. inflation data was in consensus with the market expectation. The potential fallout of the global banking system further promoted Bitcoin investment as a non-correlated global hedging instrument similar to gold in March. The correlation between gold and BTC has been rising since the start of the month.
Correlation coefficient between BTC and gold. Source: TradingView
However, institutions have become net sellers of Bitcoin in 2023, which raises some red flags. Bitcoin whales, holding between 10 and 10,000 BTC, have not participated in the current rally. It appears that retail investors are mainly driving the uptrend. The divergence between whale and retail investment could cause a short-term pullback in Bitcoin prices.
Institutional flow of crypto assets. Source: CoinSharesWhale holdings of BTC and stablecoins. Source: SantimentHoldings on one-hop miner addresses. Source: Coin MetricsBTC/USD daily price chart. Source: TradingView
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