Bitcoin: Matrixport Study Shows Promising Trend
Matrixport's head of research and strategy pointed to promising signs in the crypto market, drawing intriguing conclusions.
Institutional investors are “not giving up on cryptocurrencies”
According to Matrixport’s chief strategist, recent data suggests that up to 85% of Bitcoin purchases are the work of U.S. institutional players.
#Bitcoin +40% this year? 🤑 Smart #investors are using recent US #CPI data as a confirmation signal to buy Bitcoin and other crypto assets. 85% of the move happening during US market hours = institutions are buying. 💰 Allocate $100 million into crypto? 👉https://t.co/niRBFtbR3u pic.twitter.com/xzSS2mBIAS
— Matrixport (@realMatrixport) January 27, 2023
Marcus Thielen, head of research and strategy at the financial services firm, says the data shows that institutions are not “giving up on crypto.” He elaborated that this indicates that we may enter a new bull market.
Matrixport shared the data on January 27 in a report. The company wanted to determine whether retail or institutional investors prefer a digital asset at any time. It looked at whether that asset performs well during U.S. or Asian trading hours to reach a conclusion.
The report states that if an asset that trades 24 hours “performs well” in U.S. trading hours, it indicates that U.S. institutions are buying it. In contrast, an asset that rises in Asian trading hours means that Asian retail investors are buying it.
The report states that Bitcoin has jumped by about 40% this year, with 35% occurring during U.S. trading hours. They say this phenomenon means an “85% contribution” associated with U.S. investors, indicating demand for the asset among U.S. institutions.
What about altcoins?
Thielen also pointed out that previous data hinted that institutions usually start buying Bitcoin before investing in other cryptocurrencies.
He noted that we should see larger projects and altcoins outperforming Bitcoin based on historical precedent.
The report highlights that news regarding other projects has positively impacted token prices, such as Lido and Aptos. It also accents that the crypto rally only began after the release of U.S. inflation data on January 12.
Ethereum also enjoyed institutional inflows as it saw a strong performance during U.S. trading hours.
Institutions are not just buying Bitcoin in spot markets. Instead, there are also consistently high premiums for perpetual futures – a sign that traders are willing to overpay to gain exposure. We interpret this as indicating that faster institutional traders and hedge funds actively bought the recent crypto-market downturn.
The report concludes that this increased institutional acceptance is a “very good sign for Bitcoin.”
Andrey Kunev
Reporter at CoinsPress
Andrey Kunev is a knowledgeable cryptocurrency content creator passionate about the crypto market. With extensive experience in market analysis and investment reporting, Andrey is a valuable asset to the CoinsPress team. As a frequent contributor, he offers insightful and comprehensive coverage of market trends, price fluctuations, and new advancements in cryptocurrency. Whether you're a seasoned investor or just getting started, Andrey's clear and concise writing offers a comprehensive look at the current state of the crypto market and its prospects. Stay up-to-date with CoinsPress's expert analysis and commentary on all things cryptocurrency.
