Key Points:
Coinbase’s institution’s Bitcoin trading volume reached 75%.
Institutions buy far more bitcoin than they are mined daily.
Risk assets are finding reasons to become bullish again as US economic policy outlook improves.
Bitcoin (BTC) is expected to earn new benefits within a week as the agency strengthens its purchase of BTC, the new analysis predicts.
In an X post Wednesday, Charles Edwards, founder of Crypto’s Quantitative Digital Asset Fund, Capriole Investments, pointed to a vibrant leak from Exchange Coinbase in the US.
Analysis: Institutions should cause a rise in fresh BTC prices
Bitcoin has once again become the target of institutional buyers as US inflation has cooled and the market is seeing lower interest rates than next month.
Capriol data showed on Tuesday that 75% of Coinbase’s volume came from institution players.
“All measurements above 75% are priced higher after a week,” he said.
Capriole calculates the institution’s “overdemand” this week, at 600% of the number of approximately 450 BTC each day.
Bitcoin’s corporate finance added 810 BTC to its holdings on Tuesday, with Monday’s tally growing at another 3,000 BTC.
Bitcoin benefits from Fed rate cut optimism
The move has pushed US Consumer Price Index (CPI) data, lower than expected in July, and BTC prices towards an all-time high.
Related: Ethereum Hites New Multiyear High as Tom Lee’s Bitmine Plans Raises $200 Billion Speed
As a result, when asked why the institution was “fascinated,” Edwards drew special attention to the outlook for interest rates.
“Because yesterday’s inflation was as expected. That means the Fed will certainly cut interest rates next month, perhaps three times this year,” he wrote.
“Currently, the market is assessing the potential for a significant 0.5% reduction given the poor job background. Rate = risk assets are rising, and Bitcoin is the fastest horse in history.”
Latest data from CME Group’s FedWatch tool shows that the market is overwhelmingly predicting a 0.25% reduction in September.
“The reductions made in the 2025 market were not changed since release. The price reflects an interest rate cut of approximately 60bps,” trading company QCP Capital observed the CPI response in the latest version of the regular Asian Color market update.
“In 2026, terminal rates are also stable despite expectations for a softer labour market and a more stubborn Fed chairman. Futures positioning suggests investors will see 3% as the Fed floor in 2026.”
QCP was looking forward to next week’s Jackson Hole Symposium for further clues on the Fed’s next move.
This article does not include investment advice or recommendations. All investment and trading movements include risk and readers must do their own research when making decisions.
