Bitcoin Dips Below $108,000 as Institutional Holdings Tighten Their Grip

Bitcoin is trading just above $107,000 after a modest 2% dip from intraday highs of $110,300 on Wednesday.

Bitcoin (BTC) price dropped slightly in the past 24 hours, trading just above $107,000 after a modest 2% dip from intraday highs of $110,300 hit on Wednesday.

While some might see this as a short-term blip, the bigger picture is unfolding with interesting implications. A recent report from Gemini and Glassnode highlighted a striking trend: centralized entities are increasingly taking hold of the Bitcoin network.

Institutions Are Grasping Bitcoin

As pointed out by the report, centralized entities—exchanges, ETFs, public companies, and even governments—now hold 30.9% of the total circulating Bitcoin supply.

This is a significant shift from previous years, where decentralized entities like miners and small-scale investors typically controlled a larger portion of the network.

Moreover, over 75% of Bitcoin’s adjusted transfer volume now flows through centralized exchanges, U.S. spot ETFs, and regulated derivatives platforms.

This signals a structural change in the market. Institutions are no longer just entering; they’re anchoring Bitcoin’s liquidity and flow, potentially setting the stage for sustained price stability and a potential continuation of the bull market.

The macroeconomic scene also provides context for this narrative. Softer-than-expected U.S. inflation in May—just a 0.1% increase in the Consumer Price Index (CPI)—has rekindled hopes for Federal Reserve rate cuts later in the year.

Some analysts believe that, combined with institutional demand and the anticipation of Fed action, Bitcoin could still be on track for a $200,000 price target by year-end.

This would depend on how the remaining macroeconomic variables play out, especially regarding U.S. interest rates and the potential impact on risk appetite among institutional investors.