Institutional Demand Sparks Hopes for Bitcoin Recovery
Institutional demand for Bitcoin has gained momentum, with Morgan Stanley's Bitcoin Trust crossing $400 million in cumulative inflows.
This is significant, as it shows that institutions are still buying into Bitcoin despite its recent decline. However, the funds also registered approximately $240 million in daily outflows, indicating that near-term demand remains uneven.
The divergence emerged as Bitcoin traded below the psychological $65,000 level, leaving investors questioning whether institutional demand could provide enough fuel for a recovery.
On-chain indicators suggest that the market may still have room for an upward move. The MVRV Z-Score stood at 0.39, which is relatively close to its Realized Value.
The lower MVRV Z-Score reading has historically appeared near favorable accumulation periods, but it cannot confirm whether Bitcoin has reached a market bottom.
In addition, miners have reduced their selling activity, with miner transfers to exchanges falling to 968 BTC, the lowest monthly reading during the observed period. This could reduce immediate selling pressure and give incoming demand greater influence over Bitcoin's price.