Institutional Investors”have not given up on cryptocurrencies:according to Matrixport’s Chief Strategist, up to 85% of Bitcoin purchases come from US institutional players.
Markus Thielen, Head of Research and Strategy at financial services firm Matrixport, explained to Cointelegraph that the institutions are not standing at all “giving up cryptocurrencies;“ on the contrary, the data indicates that we could soon enter a new bull market.
Matrixport shared the results of their research on January 27. According to the firm, it is possible to identify whether a digital asset is more favorable for retail or institutional investors based on its performance during trading hours in the US or Asia.
If an asset performs well during US trading hours, it usually indicates that it is being bought by US institutions. If it sees growth during trading hours in Asia, it indicates strong interest from Asian retail traders.
The report also points out that the value of Bitcoin (BTC) has increased by 40% since the beginning of the year; 35% of these returns occurred during US trading hours. In other words, there is a “85% contributionassociated with American-based investors: It is US institutions that are buying BTC at the moment.
Bitcoin Fear and Greed Index is 55 – Greed
Current price: $23,033 pic.twitter.com/OAt0TakkZR
— Bitcoin Fear and Greed Index (@BitcoinFear) January 27, 2023
Furthermore, historical data shows that institutions typically start buying Bitcoin before investing in other cryptocurrencies:
“If history is any guide, then going forward we will see altcoins and Layer-1 assets outperform Bitcoin.”
The report highlights that Ether (ETH) performs well during US hoursindicating “institutional flows” in the cryptocurrency. But other assets, such as Lido DAO (LDO) and Aptos (APT), perform well throughout the day:
“Aptos is posting strong returns during both US and Asian trading hours.”
Overall, these data”should be a very positive sign for Bitcoin.“
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