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Why is Bitcoin up this week?

Why is Bitcoin up this week?

In recent weeks, Bitcoin (BTC) has embarked on a rollercoaster ride, plunging to as low as $25,100 earlier this month. While the cryptocurrency has displayed signs of recovery, it seems to be struggling to gather the momentum needed for a significant breakthrough. 

Nonetheless, this week has witnessed noteworthy gains for BTC as investors welcomed a new potential catalyst for institutional crypto adoption.

What happened?

The maiden cryptocurrency surged once again above the $27,000 mark this week after Nomura, the largest investment bank in Japan, announced the launch of the ‘Bitcoin Adoption Fund.’

The new offering was developed to provide institutional investors with long-only exposure to Bitcoin, propelling BTC to the top of the list of trending cryptocurrencies, Santiment data showed on September 20.

BTC became the top trending cryptocurrency after Nomura’s announcement. Source: Santiment

“Bitcoin received a boost to $27.2K after Japan’s largest investment bank, Nomura, launched an Adoption Fund for institutional investors. This is the latest in crypto’s efforts to increase exposure for interested parties beyond traditional traders.” 

– Santiment noted.

Nomura, a Japanese financial behemoth with more than $500 billion in assets under management, is targeting institutional investors interested in crypto after a number of Wall Street giants filed for launching a spot Bitcoin exchange-traded fund (ETF) earlier this year. 

Bitcoin price analysis

At the time of writing, Bitcoin was changing hands at $27,142, up 0.82% in the past 24 hours.

Over the past week, the leading crypto asset gained more than 5%, recovering from the 3-month lows it reached earlier in the month.

BTC 1-week price chart. Source: Finbold

Year-to-date, Bitcoin remains one of the best-performing major crypto assets, surging 65% since January 1, 2023.

Bitcoin’s sleeping wallets are waking up 

In a separate post on X (formerly Twitter), behavior analytics platform Santiment revealed a notable jump in Bitcoin’s on-chain activity since April.

In particular, Santiment noted a significant increase in utility, and a “big dormant activity spike” as the cryptocurrency reclaims the $27,000 level, which is “proving to be polarizing.”

Bitcoin’s on-chain activity data. Source: Santiment

The on-chain data shows that BTC has been averaging 1.1 million active addresses per day in September – the highest since April 2023.

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