Bitcoin Accumulation by Retail and Institutions Signals Potential Breakout Near $109K
Bitcoin is consolidating around $108,716, but underlying accumulation from both retail and institutional investors suggests a potential breakout.
André Dragosch, European head of research at Bitwise, noted on Aug. 29 that corporate adoption of bitcoin is reaching historic levels. In July and August, 28 new bitcoin treasury companies were established, adding over 140,000 BTC to corporate holdings—nearly matching the annual new supply of roughly 164,000 BTC. This highlights that institutional demand is absorbing bitcoin faster than miners can produce it.
Charts from Bitwise illustrate a steep rise in corporate BTC holdings, signaling that companies increasingly view bitcoin as a reserve asset, similar to Strategy (MSTR).
While some analysts anticipate a 2025 peak based on post-halving cycles, Dragosch argues that current institutional demand dwarfs historical patterns. As of Aug. 29, institutional accumulation exceeded 690,000 BTC, compared with just over 109,000 BTC in new supply—a ratio of roughly six to one.
Retail accumulation is also strong. Dragosch reported on Aug. 27 that accumulation across all wallet cohorts—from small holders to whales—reached the highest levels since April. He described investors as “stacking relentlessly,” aligning retail flows with institutional demand, a pattern that historically precedes significant upside moves.
Despite this accumulation, bitcoin remains near $108,716 as markets await new catalysts.
Price Action (Aug. 30–31)
- BTC traded in a $1,285 range, peaking at $109,518 before retreating.
- Resistance held near $109,500, accompanied by a 6,077 BTC volume spike.
- Support formed at $108,350–$108,400, where buyers stepped in.
- Institutional participation surged, with volume reaching 8,272 BTC at 13:00 UTC.
- BTC broke above $108,470 resistance at 13:46 UTC after consolidating around $108,260–$108,350.
- Profit-taking caused minor pullbacks to $108,320–$108,360, but prices remained above $108,380.
Volatility remains elevated following August’s drop from $124,500. BTC still faces resistance at $110,500, and analysts caution that a test of the $100,000 level cannot be ruled out.
