Institutional Bitcoin buying is currently exceeding daily miner production by more than five times, a historical demand-to-supply ratio that has preceded significant price increases. According to market analyst Charles Edwards, previous instances of this metric have led to an average gain of 24% over the following month. Bitcoin recently surged past $80,000, sparking substantial market activity.
Institutional investors are purchasing Bitcoin at more than 500% of the daily miner output. According to Capriole Investments founder Charles Edwards, every past instance of this demand-to-supply ratio has preceded substantial price gains.
Edwards stated that prior cases averaged a 24% return over the next month, which would take BTC to approximately $96,000. He said, “Every time it’s been this high before, price has shot up over the next week.” Bitcoin recently surpassed $80,000, marking its first time at that level since January.
The price movement triggered over $162 million in short liquidations within 24 hours. Trading volume also jumped 95% to around $34 billion during the same period.
Analyst Ali Martinez pointed to a long-term trendline that Bitcoin has historically rebounded from. Meanwhile, trader Taiki Maeda expects a specific strategy to acquire $2 to $3 billion worth of Bitcoin in the coming weeks.
Data from CryptoQuant indicated the April rally was fueled almost exclusively by futures interest. The firm noted that on-chain spot demand remained negative, creating a divergence it compared to the start of the 2022 bear market.
