According to the January 27th report, financial services firm Matrixport claimed that institutional investors are showing no signs of giving up on cryptocurrency, with data suggesting as much as 85% of Bitcoin buying is coming from American institutional players.
Markus Thielen, the chief strategist at Matrixport, said that the evidence indicates that institutions are not staying away from crypto and that this could be a sign of a new crypto bull market on the horizon.
Report Reveals Bitcoin Bullish Market Indicators
The report revealed insights on how to determine the popularity of digital assets among retail or institutional investors. The report suggests that by analyzing the performance of assets during specific trading hours, such as in the United States or Asia, it can be determined which group of investors is showing more interest.
Specifically, the report states that if an asset sees strong performance during U.S. trading hours, it is likely being purchased by U.S. institutions, while growth during Asian trading hours indicates a preference among Asian retail investors.
The report also notes that Bitcoin has seen a 40% increase this year, with 35% of those returns happening during U.S. trading hours, indicating that U.S. institutions are currently driving most of the buying interest.
The report states that institutions often begin investing in Bitcoin before other cryptocurrencies and that this trend could lead to the outperformance of other coins, particularly those on the first layer of blockchain technology and alternative coins.
The report also notes that the recent surge in cryptocurrency prices may have been sparked by positive news about other projects, such as Lido DAO and Aptos, but that the rally was solidified by the release of U.S. inflation data.
Additionally, the report notes that Ethereum is seeing strong performance during U.S. trading hours, potentially due to institutional investors, while Aptos is seeing strong returns during both U.S. and Asia trading hours. Overall, the report suggests that this trend is positive for the continued adoption of Bitcoin by institutions.
However, according to the price analysis, As of now, CoinMarketcap’s data shows that Bitcoin (BTC) is being traded at $22,980.98. The daily and weekly charts both appear to be positive, showing increases of 1.02% and 9.74%, respectively.