Currently, the global crypto market capitalization is below $2 trillion, primarily due to Bitcoin (BTC) undergoing a minor sell-off after reaching a high of $48,251 on August 14, which has a bearing on the broader market’s direction and pull.
Bitcoin’s price is $45,214 at the time of publication, down 1.90% in the last 24 hours and 2.28% in the past week and market dominance of 44.3%, according to CoinMarketCap.com data.
Despite the minor retracement, on-chain analytics expert Plan B has identified that Bitcoins stock-to-flow (S2F) and on-chain signals still indicate a second leg to this bull market.
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Bitcoin has risen in recent weeks after plummeting to less than half of its all-time highs in April. At its peak, the token was worth approximately $65,000.
Effects of the infrastructure bill
Nevertheless, the pullback comes just days after the cryptocurrency industry was unable to secure a modification in tax reporting regulations in the United States’ infrastructure package. Last week, lawmakers passed legislation that specified sweeping oversight of digital assets.
Some observers believe that politicians’ acknowledgment of the crypto market was potentially a legitimizing event and a recognition that it was here to stay, even if it only served to tighten the market’s grip.
Lead crypto insights analyst Will Clemente noted how despite the price of Bitcoin falling, the number of whales has gone up by 13,000 Bitcoin.
This data comes when reports of soaring institutional demand for BTC are in the news, as despite minor retracement, the Bitcoin price is caught in a short-term consolidation.
Institutional interest
Indeed, the major financial institution Fidelity’s top clients are interested in the new asset class, which could give BTC some optimism.
Fidelity indicated that 90% of its biggest clients want access to the flagship cryptocurrency and other digital assets. More institutional access to the digital asset class will be made available by the asset manager.
Thus, with cryptocurrency gaining institutional attention, whales accumulation, and BTC price consolidating in the $45,000 – $48,000 range, this could suggest that Bitcoin may well be on the verge of the second phase of a bull run.
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