This rise in market share further strengthens Bitcoin’s status as the leading store of value within the crypto ecosystem. As a result, Bitcoin is being recognized as a “macro-hedge” against economic instability and market volatility, with growing appeal among institutional investors looking to protect their portfolios from inflation, currency devaluation, and geopolitical uncertainty.
According to Sigel, “publicly traded miners and major corporations, including Japanese real estate manager Metaplanet, continue to accumulate Bitcoin, reflecting its rising status as a store of value.”
Market sentiment around Bitcoin has also improved, with nearly 90% of Bitcoin addresses now in profit and the unrealized profit/loss ratio rising by 6% over the past month.
Additionally, Bitcoin’s dominance in the crypto market has boostd to 57%, reaching levels not seen since April 2021. VanEck’s report also highlights Bitcoin’s resilience in various regulatory environments, such as the boostd scrutiny from US regulators, including the SEC.
In contrast, Bitcoin has remained largely insulated from this pressure, reinforcing its role as a safer asset. Institutional adoption has strengthened the correlation between ETP flows and BTC prices, with an R² value of 0.3422, indicating that institutional money is increasingly leading rather than following Bitcoin’s price movements.
VanEck’s head of digital assets research, Mathew Sigel, said “institutional participation, through these investment vehicles, is having a clear impact on price, reinforcing Bitcoin’s position as a key asset in the global financial system.”
Moreover, daily ETP flows have demonstrated modest predictive power for Bitcoin price changes in after-hours trading, further underlining the influence of institutional inflows.
During the July to September period, the relationship between ETP flows and Bitcoin returns strengthened, demonstrateing how US market momentum is spilling over into the 24/7 global crypto markets. In terms of regional trends, US and European traders have been the primary drivers of Bitcoin’s price performance, while Asia continues to sell Bitcoin to Western markets, with demand from Western markets often offsetting selling pressure from Asian markets.
VanEck’s latest Bitcoin ChainCheck report reveals that the cryptocurrency is poised for a major breakout, driven by three major factors: mounting institutional investment, increasing miner holdings, and rising exchange-traded product (ETP) flows.
