Bitcoin Holds Steady After Record High
Bitcoin (BTC) is trading around $121,300 on Friday. It hit a new record high of $126,199 four days ago. This week, BTC saw a small drop as some holders took profits. However, overall selling remains low. Institutional demand is strong, with $2.72 billion in new inflows by Thursday. This suggests the rally could continue.
Profit-Taking and Low Selling Pressure
Bitcoin reached its all-time high on Monday but pulled back about 2.5% by Friday. Some holders sold to lock in gains, shown by a spike in realized profits early this week. Despite this, selling pressure stayed low. Total net realized profits over the last 30 days are 0.26 million BTC, worth about $30 billion. This is much lower than peaks seen earlier this year. CryptoQuant analysts say low profit-taking means the price rally may still have room to grow.
Long-term Bitcoin holders, or “OGs,” are also selling less. Spending of coins held for over 10 years is half the level seen during past price peaks. High selling from these holders usually signals a market top, but that is not happening now.
Strong Institutional Interest in Bitcoin
Institutional demand for Bitcoin remains robust. Bitcoin spot ETFs received $2.72 billion in inflows this week, marking a second week of strong investment. This helped push BTC to new highs recently.
- DDC Enterprise Limited raised $124 million to boost its Bitcoin treasury strategy. The round was led by PAG Pegasus Fund and Mulana Investment Management. DDC now holds 1,058 BTC.
- KindlyMD, Inc. announced a $250 million convertible debt facility to expand Bitcoin holdings. This replaces a previous $203 million Bitcoin-backed credit line.
Market Sentiment Mixed Amid Global Events
Bitcoin recovered slightly on Wednesday, closing above $123,300. This followed the Federal Reserve’s September meeting minutes, which hinted at possible interest rate cuts later this year. The Israel-Hamas ceasefire also eased some geopolitical tensions, supporting BTC’s recovery.
However, Fed Chair Jerome Powell gave no new policy signals. The US government shutdown entered its second week, causing the US Dollar to rise. This pressured Bitcoin down to $119,651 on Thursday. On Friday, Ukraine reported a large Russian attack on Kyiv, increasing geopolitical risks and offsetting some optimism.
Luxembourg’s Sovereign Wealth Fund Invests in Bitcoin
Luxembourg’s Intergenerational Sovereign Fund became the first Eurozone state fund to invest in Bitcoin. It allocated 1% of its holdings to Bitcoin ETFs. This move boosts Bitcoin’s legitimacy and may encourage other European funds to invest.
Bitcoin Price Outlook
Bitcoin’s price hit $126,199 on Monday but dropped over 2% by Thursday, testing support near $120,000. On Friday, it trades around $121,300. If BTC falls below $120,000, it could drop further to $116,000. The Relative Strength Index (RSI) shows a slowdown in bullish momentum, suggesting short-term consolidation.
If $120,000 holds as support, Bitcoin could resume its rally and challenge the record high again.
