Bitcoin rally has broad-based support as institutions, whales, options traders pile in

“Large Bitcoin whales have been building up their positions over the last two months, while medium-sized wallets have been selling. This divergence in behaviour could be a ‘constructive signal’ for BTC in the medium term, according to CryptoQuant [data],” Alex Kuptsikevich, the chief market analyst at FxPro, said in an email.

Blockchain analysis firm Glassnode noted that the market looks much more balanced now than it did a month ago.

“Overall, the market appears increasingly balanced, with long-term conviction providing support while speculative participation remains contained,” it said.

There are also signs of growing participation in BTC futures and options. Recently, a trader (or group of traders) purchased large bull call spreads in bitcoin, targeting $72,000 by month-end.

In short, the buyer profile right now appears diverse

Risks, however, remain. The most important near-term headwind is U.S. Treasury bond issuances, which could drain liquidity from the system and weigh on risk assets.

“Treasury bill settlements are expected to result in net new issuance of $56 billion, followed by an additional $37 billion on Thursday and a smaller coupon settlement of $13 billion on Friday. Treasury bill issuance will likely remain heavy until Labor Day, creating a headwind for risk assets as we move through the summer,” Mott Capital Management’s Founder Michael Kramer said in a blog post.

Stay alert!

Read more: For analysis of today’s activity in altcoins and derivatives, see Crypto Markets Today . For a comprehensive list of events this week, see CoinDesk’s “Crypto Week Ahead.”

• Crypto markets rally on Clarity progress report, Asian chip-stock rebound (CoinDesk): The crypto market rallied on reports President Donald Trump agreed to a crucial ethics provision for U.S. Clarity Act, clearing a hurdle for the crypto market structure bill’s progress.
• UK Parliament begins inquiry into banking chokepoint for crypto businesses (CoinDesk): U.K. politicians want to know the extent to which the country’s banks have choked-off crypto firms by refusing them bank accounts and introducing restrictions on crypto-related payments.
• U.S. futures higher as AI trade bounces back (The Wall Street Journal): U.S. stock index futures jumped as artificial-intelligence stocks rode a fresh wave of optimism, buoying equity indexes in Asia and Europe. Oil hovered close to $90 a barrel as traders weighed competing developments.
• Treasury yields edge lower as investors map geopolitical risks (CNBC): U.S. Treasury yields edged lower across the curve on Tuesday as investors mapped escalating tensions across the Middle East. The 10-year T-bond was broadly flat at 4.594%, the 2-year stood at 4.198%, and the 30-year at 5.118%.

The chart shows BTC’s price action alongside its 50-, 100-, and 200-day simple moving averages, represented by red, white, and blue lines, respectively. BTC’s rally has gathered pace after recently breaking above the 50-day average, a widely tracked gauge of the near-term trend.

A sustained hold above this level could attract more buyers and accelerate gains toward the 100-day average at $70,173.

The next major resistance sits at the 200-day average, currently positioned just above $72,800. A decisive break above it would confirm that the bear market that began in October last year has ended and a new bull run has begun.