Bitcoin Fails to Break $80K as Institutional Demand Meets Heavy Supply
Bitcoin's price has risen by around 1% over the past 24 hours to $78,700, but it remains stuck below the crucial $80,000 mark. The latest institutional buying activity has met with profit-taking and a significant supply zone above current levels.
The recent purchase of 4,603 BTC for $369.7 million by Strategy, a major corporate holder, is a significant development in the market. According to its latest SEC filing, Strategy acquired the coins at an average price of $80,318 per coin, which is higher than Bitcoin's current market price.
Despite renewed demand from institutions, including US spot Bitcoin ETFs that attracted over $2.8 billion during eight consecutive sessions in August, the cryptocurrency has struggled to break above $80,000. Glassnode data reveals a concentration of long-term holders close to their cost basis and a heavy pocket of coins held in self-custody beginning near $80,800.
The macroeconomic environment is also playing a role in Bitcoin's inability to surpass $80,000. Federal Reserve Chair Kevin Warsh's hawkish speech at Jackson Hole pushed market expectations sharply towards another rate increase, with traders seeing a more than 65% probability of a September hike.