Bitcoin‘s recent rally has seen a surge in both institutional and retail investor activity, with the cryptocurrency stabilizing near $34,000 after reaching its highest value since May 2022 at over $35,000. This represents a significant 107% increase since the beginning of the year, fueled by anticipation of spot exchange-traded funds (ETFs) and an increase in safe-haven demand.
Last week, bitcoin transactions over $100,000, typically associated with “whale” investors, reached a year-to-date high of 23,400. This increased activity coincides with the filing of Blackrock’s (NYSE:BLK) ETF application and is believed to have increased whale and institutional interest in bitcoin, according to data from IntoTheBlock.
The Securities and Exchange Commission (SEC) is expected to approve several spot-based ETFs next year. This development could potentially push bitcoin’s market value to $42,000 or more.
Meanwhile, data from Deutsche Digital Assets indicates that retail investor activity is also on the rise. The Onchain Small Entity Activity Index reached a new annual high of 1.5 last week, indicating increased participation from retail investors.
This increase in both institutional and retail participation underscores the growing interest in bitcoin as it continues its upward trajectory. The expected approval of several spot-based ETFs next year could further stimulate this activity and potentially push bitcoin’s market value to new heights.
