Report: 67% of institutions are optimistic about Bitcoin, ETH receives $1.5 billion in purchases, Q4 market expected to break through.

The latest fourth quarter outlook report released by a leading CEX in the United States shows that institutional investors have strong confidence in Bitcoin. Among the 124 institutional investors surveyed, 67% hold a positive view of Bitcoin's prospects in the next three to six months. Digital asset treasury companies have actively bought during the price fall, with BitMine purchasing nearly 379,000 Ethers worth almost $1.5 billion when Ethereum dropped below $4,000. The report predicts that the Fed will cut interest rates two more times before the end of the year, which may drive capital towards risk assets. The supply and volume of stablecoins are approaching historical highs, further supporting the structure of the crypto market.

Institutional Investor Confidence Strong: Bitcoin is Seen as “Digital Gold”

The report “Navigating Uncertainty” released in collaboration with Glassnode by CEX provides an in-depth analysis of institutional sentiment following the market volatility on October 10.

· Institutional Optimism: Among the 124 institutional investors surveyed, 67% are optimistic about Bitcoin's prospects in the next 3 to 6 months.

· Cycle perception difference: 45% of institutions believe the market is in the late stage of a bull market, while only 27% of non-institutional investors hold this view, highlighting the cognitive differences in cycle judgment between professional and retail investors.

· Asset Preferences: The report is more optimistic about Bitcoin in the current environment, positioning it as “digital gold” during periods of fiscal and monetary uncertainty. Ethereum also shows positive structure due to smooth scaling progress, activity shifting to Layer 2, and decreasing fees.

BitMine $1.5 billion purchase of ETH: Treasury company buys on dips

The digital asset treasury companies are an important force in this year's crypto market, actively engaging in buying the dip during price declines.

· Large ETH Purchase: BitMine, chaired by Tom Lee, bought over 379,000 Ethers, worth nearly 1.5 billion dollars, after the market crash caused Ethereum to fall below 4,000 dollars.

· Long-term holding intention: Although the stock market has experienced a correction, the digital asset treasury company's encryption asset reserves remain intact. Michael Saylor also hinted that his company Strategy may purchase more Bitcoin.

Macroeconomic Support: Interest Rate Cut Expectations and Improved Liquidity

The report predicts that the macroeconomic environment will provide key support for the crypto market.

· Fed interest rate cut expectations: Reports expect the Fed to make two more rate cuts before the end of 2025. This may prompt investors to shift funds from money market funds to risk assets.

· China Stimulus: China's fiscal and monetary stimulus policies may also attract more investors into the market.

· Liquidity Indicator: The global M2 money supply index of this CEX (which has a high historical correlation with Bitcoin prices, with a lead time of about 110 days) was in a supportive position at the beginning of this quarter.

The market structure is maturing.

· Stablecoins and ETFs: Stablecoin supply and monthly volume are nearing or at historical highs, indicating an increase in on-chain payments and transfer activities. Meanwhile, the U.S. spot ETF infrastructure for Bitcoin and Ethereum continues to develop, providing better access for traditional investors.

Risk Warning: High Leverage and Liquidity Exhaustion

The report also pointed out the potential risks in the current market.

· Reasons for the October crash: Reports warned that the crash on October 10 was due to high leverage encountering a thin order book. The automatic deleveraging mechanisms of certain exchanges limited the short positions of market makers, leading to a depletion of liquidity.

· Other uncertainties: The potential liquidity retreat in November, uncertainties arising from the lack of U.S. economic data, and the long-term sustainability of the business model of digital asset treasury companies are all risk points that need attention.

Conclusion

This report depicts the strong confidence of institutions in Bitcoin and views the macroeconomic environment (such as expectations of interest rate cuts) as a key driving force for the crypto market in Q4. Activities of treasury companies, represented by the purchase of Ethereum through BitMine, demonstrate the willingness of institutions to accumulate during the pullback. If liquidity conditions, policy developments, and the expansion of on-chain usage can be sustained, Bitcoin, with its status as digital gold, is expected to lead the market to growth before the end of the year.

Disclaimer: This article is for news information only and does not constitute any investment advice. The cryptocurrency market is highly volatile, and investors should make cautious decisions.