Bitcoin rally draws broader buying from institutions, whales and options traders

Bitcoin’s rally is being driven by a broader mix of buyers, including institutional investors, whales, long-term holders and options traders, CoinDesk reported. CoinDesk said expectations for the passage of the CLARITY Act have risen after reports that the White House agreed to the bill’s ethics provisions, helping lift the crypto market. The most prominent buyers have been institutional investors using U.S. spot BTC ETFs. According to SoSoValue data, Bitcoin ETFs have recorded net inflows of more than $700 million for five straight trading days, the longest inflow streak since May. Long-term investors who have held BTC for more than six months have also continued to accumulate the asset. Bullish signals have also emerged in the derivatives market. CoinDesk said a recent investor or group of investors appears to have built a large call options strategy targeting BTC at $72,000 by month-end. Alex Kuptsikevich, chief market analyst at FxPro, cited CryptoQuant data as saying BTC whales increased their holdings over the past two months while mid-sized investors sold. Kuptsikevich said the divergence could be a positive medium-term signal for BTC.