Matrixports head of research and strategy suggests the industry will soon see layer 1 and other altcoins outperforming relative to Bitcoin. 6271 Total views 37 Total shares Listen to article 0:00 News Own this piece of history
Collect this article as an NFT Institutional investors are not giving up on crypto, with recent data pointing to as much as 85% of Bitcoin buying being the result of American institutional players, according to Matrixports chief strategist.
Markus Thielen, the head of research and strategy at the financial services firm, told Cointelegraph the evidence shows that institutions are not giving up on crypto and is an indicator that we might be entering a new crypto bull market now.
The data was shared in a Jan. 27 report from Matrixport, which suggests that it can be distinguished whether a digital asset is more favorable by retail or institutional investors at any given time based on whether that asset is performing well in the United States or Asian trading hours.
The report stated that if an asset that trades 24 hours performs well during U.S. trading hours, it indicates that U.S. institutions are buying it, while an asset that sees growth during Asian trading hours indicates that Asian retail investors are buying it.
The report cited that Bitcoin (BTC) is up 40% this year, with 35% of those returns occurring during U.S. trading hours, meaning there is an 85% contribution associated with U.S.-based investors, indicating that U.S. institutions are buyers of Bitcoin right now.
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 institutions typically first start buying Bitcoin before investing in other cryptocurrencies. He noted:If history is any guide, then we should see the outperformance of layer 1 and altcoins relative to Bitcoin.
While the report highlighted that news regarding other projects positively impacted token prices such as Lido DAO (LDO) and Aptos (APT), the crypto rally only started once the U.S. inflation data was released on Jan. 12.
It was also mentioned that Ether (ETH) appears to be performing well during U.S. hours, indicating institutional flows into the cryptocurrency, however, APT is doing well around the clock.Aptos is seeing a mix of strong returns during U.S. trading hours AND during Asia trading hours.
The report concluded that this should be a very positive sign for Bitcoin as institutional adoption continues.
Related:Data shows pro Bitcoin traders want to feel bullish, but the rally to $23K wasnt enough
In earlier comments to Cointelegraph, economist Lyn Alden believes that Bitcoin is currently playing a bit of catch-up, getting back to where it would have beenwithout the FTX collapse occurring.
Alden warned that there is considerable danger ahead for the second half of 2023, citing liquidity conditions being good right now partly because of the U.S. as a significant factor.
#Bitcoin is a Masterpiece. pic.twitter.com/2rhnCYlkW1 Michael Saylor?? (@saylor) January 25, 2023
Alden explained that as the U.S. Treasury is drawing down its cash balance to keep the countrys debt levels low, it pushes liquidity into the financial system.
Meanwhile, popular trader and market commentator TechDev posted aTwitter update on Jan. 26 showing the price correlation between Bitcoin and gold, stating that if Bitcoin continues to follow the price of gold, it might even crack the $50,000 mark. #Bitcoin #Cryptocurrencies #Bitcoin Price #Bitcoin Analysis #Adoption #Economy #United States #Tokens #Price Analysis #Trading Related News How to create an ERC token without coding, explained Creating self-sovereignty in the creator economy and Web3 Is there room for both? Erik Voorhees tips $40K BTC by June, but little consensus among pundits Celebs who got burned endorsing crypto and those that got away with it Macroeconomic data points toward intensifying pain for crypto investors in 2023
