Is this Bitcoin Course Rally more sustainable than in 2017? How institutional investors change the market and how you can read them correctly
Once again the Bitcoin price is moving towards the all-time high of 2017. Strictly speaking, it has even exceeded this in the short term. Many analysts assume that the current Bull Run is much more sustainable than its counterpart in 2017.
In this article, I discuss how traditional investors are changing the rules of the game from the current Bitcoin price rise and what you need to look out for. Learn to read the Immediate Bitcoin indicators of the derivatives market correctly and gain important insights into the orientation of institutional investors in the market.
Bitcoin price rally to ATH is more sustainable this time
While some price correction is expected in the short term, many analysts believe that the recent Bitcoin price rally will be more sustainable in the long term than that of 2017, when the price per BTC last reached an all-time high.
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What is the difference? The current market has received support from a new wave of institutional investors, mainly from North America. John Todaro, Director of Institutional Research at crypto-currency analysis firm TradeBlock, commented:
One could look at the timing of the rally, which coincided with typical US market opening hours.
He added that volumes are also higher for LMAX Digital, which is primarily targeted at institutional traders.
BTC inflows to exchanges increased strongly on Thanksgiving
According to data provider CryptoQuant, BTC’s inflow on the stock exchanges has exceeded the strong outflow since the sell-off at Thanksgiving.
Ki Yong Ju, Chief Executive Officer of CryptoQuant, believes that this on-chain metric could indicate a short-term downward trend and bring the Bitcoin price back to a level of around $16,000. Indeed, this indicator suggests that large BTC investors, so-called Bitcoin whales, appear to be active on the exchanges, which is known to increase selling pressure.
Traditional players are changing the situation
Bitcoin Whales is a good keyword. Because not so long ago, in the crypto world, we saw a number of pure crypto companies, Bitcoin miners and early investors as the „big money“ in the market. However, according to Denis Vinokourov, head of research at Digital Asset Prime Broker Bequant, the composition of market participants has increasingly changed this year and now includes a new group that the traditional financial world calls institutional investors.
Vinokourov sees ongoing capital inflows into the Grayscale Bitcoin Trust and other issuers of exchange-traded products (ETPs) as evidence that institutions in the traditional financial markets are investing money in Bitcoin.