Analyst Claims Demand Structure Has Changed in Bitcoin: Here Are the Risks of Institutional Interest! - Koin Bulletin

Bitcoin (BTC) market continues to stand strong despite the Fed’s tightening policies and tensions in the Middle East, thanks to the strong interest from institutional investors.

The fluctuation of Bitcoin’s price at around 106 thousand dollars has increased uncertainty among investors, but analysts indicate that the situation is quite positive in the long run. In particular, the growing interest of companies in BTC suggests that the demand structure in the market is changing.

The chief analyst of BRN, Valentin Fournier, emphasized that the demand for Bitcoin from institutional investors forms the basis despite short-term risks. According to Fournier, the plans of companies like Semler Scientific to significantly increase their Bitcoin holdings strengthen the long-term bullish scenario for BTC. Fournier also stated that the current market conditions present a savings opportunity for investors and that more companies will emerge with similar moves in the future.

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Have the risks decreased?

Peter Chung, the Head of Presto Research, believes that the current institutional purchases are different from the sudden rise and fall cycles of the past. Chung stated, “The current situation looks healthier compared to the crisis periods of 2021. Companies are now minimizing their potential losses by steering clear of crypto-collateralized risky loans.”

Chung also noted that there is no excessive premium in the market and therefore the risk of sudden selling pressure due to investor activism is lower.

Analysts believe that, in general, the structural demand for Bitcoin has maintained its strength in the current environment of uncertainty, and that institutional purchases have contributed to market stability.