US Institutions' Bitcoin Holdings Lag Behind Overseas Counterparts

US institutions' Bitcoin holdings have not yet shown a clear uptrend, suggesting that a full-fledged bull market may still be some time away. According to CryptoQuant contributor Crypto SunMoon, historically, Bitcoin bull markets unfold after US-based crypto custodians begin to show relative strength in their Bitcoin holdings compared to those held by overseas institutions. However, the current data indicates that this pattern has not emerged yet.

US-based custodians include exchanges, digital-asset managers, and crypto banks. When these institutions start accumulating Bitcoin aggressively, new capital tends to flow into the broader market, helping to launch a bull run. But for now, the relative strength in US Bitcoin holdings is lacking, suggesting that the current rangebound trading could continue for a while before the next bull market begins.

While some may interpret the current oversold conditions and market fear as signs of a bottom, there is insufficient evidence to confirm a trend reversal until institutional holdings data is verified. In fact, the lack of relative strength in US Bitcoin holdings suggests an immediate weakening of institutional buying pressure. If Bitcoin successfully holds the $57,486 support level, it may attempt to recover to $60,000; if it fails, a decline into the $55,000 range is anticipated.