Why Is Bitcoin Rising This Week?
In recent weeks, Bitcoin (BTC) has embarked on a rollercoaster ride, dropping as low as $25,100 earlier this month. While the cryptocurrency has shown signs of recovery, it appears to be struggling to gather the momentum needed for a significant breakthrough.
However, this week we witnessed significant gains for BTC, as investors welcomed a potential new catalyst for institutional crypto adoption.
What Happened?
The primary cryptocurrency once again surpassed the $27,000 mark this week after Japan’s largest investment bank, Nomura, announced the launch of the “BTC Adoption Fund.”
According to Santiment data on September 20th, this new offering was developed to provide institutional investors with the opportunity to be exposed to Bitcoin for the long term, propelling BTC to the top of the list of trending cryptocurrencies.
Japanese financial giant Nomura, with assets of over $500 billion under management, is targeting institutional investors interested in cryptocurrencies after a series of Wall Street giants applied to launch spot BTC exchange-traded funds (ETFs) earlier this year.
Bitcoin Price Analysis
At the time of writing this article, Bitcoin was trading at $27,142, showing a 0.82% increase in the last 24 hours.
Last week, the leading cryptocurrency rebounded with gains of over 5%, recovering from the lowest levels in three months it reached at the beginning of the month.
BTC continues to be one of the top-performing major crypto assets since the beginning of the year, showing a 65% increase since January 1, 2023.
Bitcoin’s Dormant Wallets Are Waking Up
In a separate post on X (formerly known as Twitter), behavior analysis platform Santiment revealed a significant surge in on-chain activity for BTC since April. Santiment noted a particularly substantial increase in utility and a “polarizing” surge in “large dormant activity” with the cryptocurrency regaining the $27,000 level.
On-chain data indicates that in September, BTC reached an average of 1.1 million active addresses per day, marking the highest level since April 2023.
