Bitcoin Holds Above $100,000 as the Market Shifts Toward Institutional Control
Even though Bitcoin remains above the $100,000 mark, on-chain activity has shown a quiet trend, seemingly detached from the price movements. According to Glassnode’s latest report, the daily average transaction count on the Bitcoin network has decreased to between 320,000 and 500,000, about half of the 2023 peak. However, the average transaction value has tripled, now standing at $36,200 — more than three times the previous average.
2. Institutional Investors Lead the Market
A notable trend is the dominance of large transfers exceeding $100,000, which now account for 89% of the total on-chain transaction volume. This signals that institutional investors and high-net-worth individuals are driving the market. In contrast, transactions under $100,000 have decreased significantly, with the proportion of transactions under $10,000 dropping from 12.3% at the end of 2022 to just 3.0% now.
3. Price Hits New Heights, Fees Fall – A Quiet Bull Market
While Bitcoin’s price remains at high levels, network fees have significantly decreased. The average daily network fee income is now $558,000, much lower than during previous price surges, where network congestion and skyrocketing fees were common. This reflects a shift towards lower transaction frequencies and more refined use of the network by institutional players.
4. Off-Chain Derivatives Trading Surges – Market Power Shifts
Bitcoin trading is rapidly moving from on-chain to off-chain platforms. Centralized exchanges are seeing daily spot trading volumes exceeding $10 billion, while futures contracts have reached an average of $57 billion, peaking at $122 billion. Options trading has also been on the rise, averaging $2.4 billion daily. This shows that off-chain trading volume has reached up to 16 times the on-chain volume, indicating that the center of investment activity has already shifted outside the blockchain network.
5. Leverage Builds Up – A Clear Shift in Market Structure
The open interest in derivatives, including futures and options, remains high at $96.2 billion. Since the launch of Bitcoin’s spot ETF in the U.S. in January 2024, open interest has continued to grow. Despite the expansion of leverage, the quality of collateral is improving. Glassnode points out, “In the past, highly volatile crypto collateral was common, but recently, stablecoins pegged to the dollar have become the preferred collateral,” indicating that the market is maturing and risk management is becoming more sophisticated.
6. Bitcoin Transforms Into an Institutional Asset
Cryptocurrency analysts are concluding that Bitcoin is transforming into an “institutional asset.” CryptoBizArt highlights, “While the price is heading towards new highs, the trading structure is increasingly being dominated by institutions, not individuals.” This shift suggests that Bitcoin is no longer just a speculative asset for retail investors but is becoming the cornerstone of institutional investment portfolios.
While Bitcoin continues to hold its price at high levels, the underlying market structure is shifting toward institutional control. Off-chain trading is booming, and the derivatives market is expanding, indicating that Bitcoin is evolving into an institutional asset. This structural change is a sign that Bitcoin’s role in the digital economy will continue to strengthen, creating new investment paradigms.
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