According to Matrixport’s chief strategist, institutional investors “haven’t given up on cryptocurrencies.” Recent data shows that 85% of his Bitcoin purchases are by American institutional investors.
Marcus Thielen, head of research and strategy at the financial services firm, has provided Cointelegraph with evidence that institutions are “not giving up on cryptocurrencies” and is now entering a new “cryptocurrency bull market.” He said it shows there is a possibility.
The data, shared in Matrixport’s Jan. 27 report, favors retail and institutional investors at any given time based on whether digital assets are performing well in the US or Asia. This suggests that it is possible to distinguish between trading hours.
Report says if an asset that trades 24 hours a day during US trading hours ‘does well,’ it means US institutional investors are buying it, with growth seen during Asian trading hours The asset shows that Asian retail investors are buying it.
A report shows that Bitcoin (BTC) is up 40% this year, with 35% of its returns occurring during US trading hours, with an “85% contribution” associated with US-based investors. ” means that the US institution is currently Bitcoin.
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
Thielen added that previous data shows that institutional investors typically start buying bitcoin first before investing in other cryptocurrencies. he said:
“If history is any guide, Layer 1 and altcoins should outperform Bitcoin.”
The report highlights that news about other projects had a positive impact on token prices such as Lido and Aptos, but the cryptocurrency’s rally only came after the release of US inflation data on Jan. 12. Started.
It was also noted that Ethereum (ETH) appeared to be doing well during US timezones, indicating an “institutional influx” into the cryptocurrency, while Aptos was on a round-the-clock. We are progressing smoothly.
“Aptos is seeing a mix of strong returns during US trading hours and during Asian trading hours.”
The report concluded by stating that this “should be a very positive sign for Bitcoin” as institutional adoption continues.
Related: Data Shows Professional Bitcoin Traders Want To Be Bullish, But The Rise To $23,000 Wasn’t Enough
In a previous comment to Cointelegraph, economist Lynn Alden believes Bitcoin is currently making a “little catch-up” that is returning to where the FTX collapse would not have happened. .
Alden warned that there is “considerable danger” ahead in the second half of 2023, and said the liquidity situation is “good now”, partly due to the US being a major factor.
#bitcoin Masterpiece. pic.twitter.com/2rhnCYlkW1
— Michael Saylor ⚡️ (@saylor) January 25, 2023
Alden explained that the U.S. Treasury is pushing “liquidity into the financial system” as it cuts cash balances to keep the country’s debt levels low.
Meanwhile, popular trader and market commentator TechDev posted a Twitter update on Jan. 26 showing the price correlation between Bitcoin and gold, stating that if Bitcoin continues to track the price of gold, it will reach a “$50,000 mark. He said it might even break the table.