Analysis: Recent BTC Rally Supported by Multiple Sources of Capital as Institutions, Whales, and Options Traders Increase Their Positions

Odaily reports that Bitcoin and the crypto market have recently experienced an upward trend. Market sources indicate that the White House has reached a consensus on the ethical clauses of the CLARITY Act, which may increase the likelihood of the bill advancing in Congress, paving the way for further institutional investor participation in the crypto market. In terms of capital flows, this round of gains is not driven by a single factor—institutional investors, long-term holders, and derivatives traders have all shown positive signals. Over the past five trading days, US spot Bitcoin ETFs attracted more than 700 million dollars in inflows, marking the longest consecutive net inflow period since May this year. This trend is in sharp contrast to the large-scale sell-off earlier this summer, when the market saw about 7.5 billion dollars in redemption pressure from mid-May to June.

In addition, large Bitcoin whales have continued to increase their holdings over the past two months, while medium-sized wallets have been selling, a divergence that may be a "positive signal" for Bitcoin’s mid-term performance. Meanwhile, activity in the Bitcoin futures and options markets has also picked up. Recently, a trader or trading group made a large purchase of Bitcoin call spread options, betting that Bitcoin will rise to 72,000 dollars by the end of the month. (CoinDesk)