Bitcoin is Now a Global Financial Player as Institutions Take the Helm: Bitwise
Bitwise analysis indicates Bitcoin is evolving into a macro-scale instrument driven by institutional flows, evidenced by ETF adoption and market structure changes.Summary
According to analysis from Bitwise, Bitcoin is transitioning from an experimental digital asset to a macro-scale instrument with global capital relevance, as its market capitalization and liquidity now resemble established macro markets. Institutional participation has significantly accelerated following the launch of US spot ETFs on January 11, 2024, which have absorbed 1.26 million BTC, or about 6.3% of the circulating supply. The institutionalization is further signaled by the expansion of Bitcoin options markets, where open interest on platforms like Deribit and IBIT has reached tens of billions of dollars. On-chain data shows a structural transformation, with large transactions over $1 million dominating volume, and Long-Term Holders capturing a higher percentage of realized profit this cycle. Bitcoin's realized volatility has declined, and its drawdown profile is now closer to major equities like the QQQ, suggesting institutional participants are acting as a structural backstop during stress events. This evolution positions Bitcoin as a reliable store of value and a global settlement network within the broader financial system.
(Source：Bitcoin Magazine)