Institutions Buy as On-Chain Data Keeps Bitcoin Above $100K
Bitcoin’s market structure remains robust despite a weak August close. On-chain indicator Delta Cap, currently at $739.4 billion and equating to a $108.9K price floor, highlights strong long-term valuation support. Bitcoin trading above this rising floor suggests continued capital inflows and conviction among holders.
Institutional demand is also rising. The Coinbase Premium Gap shows a +11.6 spread over Binance, indicating US institutions pay a premium for Bitcoin. Combined, these signals suggest current price dips offer accumulation opportunities within a broader uptrend.
Analyst Rekt Fencer notes that August weakness may have preemptively priced in typical September sell-offs. With the market in Phase 3 of its cycle—backed by spot ETFs, increasing institutional involvement, and potential macro catalysts like rate cuts and altcoin ETF approvals—analysts foresee a larger rally in fall 2025.
Bullish
Bitcoin’s ability to hold above its Delta Cap floor and above $100K amid short-term corrections, combined with strong institutional buying signals like the Coinbase premium, mirrors past cycles where early dips preceded major rallies (e.g., 2017). The market’s Phase 3 cycle characteristics—extended uptrends, softer pullbacks—and forthcoming macro catalysts (potential rate cuts, ETF approvals) support further upside. Therefore, current conditions favor accumulation and suggest sustained bullish momentum in both the short and long term.