Here Is What Drives Bitcoin’s Positive Price Movements, According to VanEck

According to VanEck's report, Bitcoin (BTC) is poised for a potential breakout driven by 3 key reasons.

VanEck’s latest report indicates that Bitcoin (BTC) is on the brink of a significant breakout, attributed to three main factors: increasing institutional investment, miner accumulation, and flows into exchange-traded products (ETPs).

The rise in institutional adoption has strengthened the link between ETP inflows and BTC price movements. As of mid-October, U.S. BTC products experienced weekly inflows of $19.4 billion, with institutional capital playing a crucial role in influencing prices.

The findings indicate a strong correlation between ETP flows and cryptocurrency returns, reflected in an R² value of 0.3422, suggesting that institutional investments are becoming a significant driver of Bitcoin’s price. Moreover, ETP flows appear to possess some predictive capacity for post-trade performance.

Bitcoin is increasingly viewed as a “macro hedge” against economic instability, particularly among institutional investors seeking protection from inflation and market fluctuations. Additionally, U.S. miners boosted their Bitcoin holdings by 2% in September, following an 11% increase in August, showcasing their confidence in the cryptocurrency’s future value.

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Market sentiment around Bitcoin has also seen improvement, with nearly 90% of addresses currently in profit and its dominance in the crypto market rising to 57%. This reinforces Bitcoin’s position as a primary store of value within the digital asset landscape.

Despite increasing regulatory scrutiny on non-Bitcoin assets, Bitcoin remains relatively insulated, solidifying its reputation as a safer investment option. The report further notes that U.S. and European traders are significantly influencing Bitcoin’s price, with demand from these regions often counterbalancing selling pressure from Asian markets.

Alexander Stefanov