Bitcoin institutional investors return: Transactions above $100,000 reach yearly high

Bitcoin’s current exchange-traded fund (ETF)-driven bull run has seen the return of large transactions above $100,000.

Daily Bitcoin (BTC) transactions of more than $100,000 reached about 23,400 on Oct. 24, a phenomenon driven by growing institutional interest in the leading cryptocurrency. The surge in transactions coincided with the asset’s recent rise to levels above $34,000, according to data from IntoTheBlock.

Institutional interest drives BTC trading

The large trades suggest institutional participation, which last occurred in June when BlackRock filed for an ETF.

Of particular note is the prospect of introducing a spot Bitcoin ETF in the future, which could further attract institutional investors to the Bitcoin market. A spot Bitcoin ETF provides investors with the greatest opportunity to gain exposure to the cryptocurrency — without having to own it directly.

However, it is worth mentioning that the current number of large Bitcoin transactions, although setting a record high for the year, is still far below the historical high.

According to data from IntoTheBlock, in 2017, when the price of Bitcoin was around $17,000, there were more than 345,000 large transactions.

As institutional interest in Bitcoin adoption continues to grow, experts predict that Bitcoin’s price could hit new highs after the U.S. Securities and Exchange Commission (SEC) finally approves a spot Bitcoin ETF.

Experts predict bullish trajectory for Bitcoin price after spot ETF approval

Many market experts and observers have expressed their opinions on the potential impact of a spot Bitcoin ETF approval on the price of Bitcoin. While there is optimism, price predictions vary, with some being more conservative and others being more bullish.

Matrixport, a cryptocurrency services provider, predicts that the price of Bitcoin could reach as high as $125,000 by December 2024. The company attributes this expected surge to Bitcoin entering its fifth bull run, which begins in June 2022.

Additionally, the firm noted that the growing expectations of institutional adoption of cryptocurrency payments has also largely driven this latest bull run.

Similarly, Charles Yu, a researcher at Galaxy Digital, expects the price of Bitcoin to grow 74% in the first year after the SEC approves a spot Bitcoin ETF.

Yu said that in the initial year of the ETF's trading, monthly returns could fluctuate between +3.7% and +6.2%.