Bitcoin (BTC) has witnessed remarkable growth this year, as seen in its realized capitalization, which rose from $430 billion in January to a new high of $730 billion. The cryptocurrency recently had a historic moment when it crossed the $100,000 mark, reaching a six-figure value for the first time.
Analysts at the CryptoQuant blockchain intelligence platform revealed in a weekly report that this growth has been driven by the broader adoption of Bitcoin among institutions and corporations, especially after the launch of US spot Bitcoin exchange-traded funds (ETFs) and improved clarity regulatory.
Institutional adoption drives BTC growth
According to CryptoQuant, the increase in Bitcoin’s realized limit reflects a significant influx of investments and growing confidence in the cryptocurrency as a reliable investment asset. Bitcoin is becoming increasingly integrated into traditional financial systems, and this development is paving the way for more liquidity to enter the ecosystem.
The launch of Bitcoin Spot ETFs in January created a regulated and accessible avenue for institutional and retail investors to gain exposure to BTC without the hassle of directly owning the asset. These products now hold over a million BTC with billions of dollars in trading volume.
“In fact, this year’s Bitcoin price rally has been fueled by purchases by large investors. On-chain data reveals that large Bitcoin investors have increased their holdings by a net 275,000 Bitcoin so far in 2024, reaching a record 16.4 million Bitcoin,” CryptoQuant stated.
Bitcoin’s utility expands
In addition to US spot Bitcoin ETFs, institutions such as business intelligence firm MicroStrategy have significantly increased their BTC holdings since the beginning of the year. MicroStrategy held 189,000 BTC in January, but the company’s latest announcements reveal that holdings have increased to 402,100.
Other US-based companies, such as healthcare technology provider Semler Scientific, have also adopted BTC as a strategic reserve asset, leading to a continued accumulation of cryptocurrencies.
As corporations continue to purchase BTC, crypto exchanges are reporting notable increases in their average BTC and Tether (USDT) deposits. Average bitcoin deposits across all exchanges increased from 0.36 BTC last year to 1.65 BTC currently, while USDT deposits grew from $19,600 to $230,000.
Meanwhile, new use cases on the Bitcoin network, such as the Runes protocol, have expanded the utility of the former beyond being a store of value, allowing the minting of tokens directly on the blockchain.
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