Matrixport analysts have published a new report in which they say that U.S. institutional investors are making very aggressive purchases in the Bitcoin market. They are expected to account for 85% of global demand.
Cryptocurrencies as an important investment sector for institutions
Cryptocurrencies may now be entering a new bull market. This is according to the head of research and strategy at Matrixport, Markus Thielen. According to him, the proof of this fact is to be seen in the level of interest from institutions. Especially those based in the United States. According to Thielen, the Matrixport report published on January 27 suggests that it is possible to distinguish between retail and institutional activity. The key is supposed to be the trading activity of an asset at different times. In this case, it takes into account the U.S. and Asian time zones, and their dedicated business hours.
According to the report, if an asset, in this case Bitcoin, performs well during U.S. trading hours, it means that U.S. institutional investors are showing interest in it. If, on the other hand, the battle is won during Asian hours, then … retailers there come to the foreground.
A report full of errors
However, we suggest treating the above data with a considerable pinch of salt, as it contains a number of downright glaring errors. First of all, it assumes only two time areas that may be relevant to cryptocurrency trading. It does not take into account Europe, which also shows great signs of crypto adoption. The same can be said of Africa. Recall that in Nigeria, the search rate for the phrase “how to buy Bitcoin” is currently the highest in the world. South America, which is massively deploying blockchain-based solutions, is also not singled out.
Another very important issue, in turn, is how to distinguish between institutional and retail investors. According to the report, it is assumed that all Asian buyers are considered retailers. Such, in turn, are not found in North America.
Some data worth noting
Thielen also pointed out that institutions are mainly focused on Bitcoin purchases, adding:
“If history is any guide, we should see a preponderance of tier one coins and altcoins relative to Bitcoin.”
He used the example of two cryptocurrency assets on this occasion. He was referring to the Lido DAO (LDO) and Aptos (APT). The positive news gathering around them has contributed significantly to their adoption, as well as to their rising valuation. In addition, APT is expected to enjoy excellent trading results during both Asian and US sessions.
