The cryptomarkt has had a lot of movement in recent months. Bitcoin (BTC) reached a new all-time high of 124,500 dollars two weeks ago. Bitcoin then lost a lot of value, although it made a surprising recovery yesterday. The correction to $ 112,000 has scared many investors and let it get out, but that could turn out positively.
Small investors drop out
New on-chain data indicates that small investors lose interest in Bitcoin. These are investors who carry out transactions of less than $ 10,000. Their activity on the network has decreased by 5.7 percent in the past month, according to data from blockchain analysis platform cryptoquant.
According to analyst Marchunn van Cryptoquant, these small investors are the “tourists of the Cryptomarkt”. They start especially when there is hype, but disappear quickly as soon as the course moves down again. The latter is exactly what happened last week.
Last Thursday, Bitcoin popped to a new price record, but after that it lost ten percent of its value in a week. This has trained on their confidence with many small investors.
It is striking that this pattern also occurred earlier this year. Bitcoin Koers fell under the psychological limit of 100,000 dollars in June. As a result, the activity of smaller investors also decreased considerably. Shortly thereafter, however, a strong revival followed. Bitcoin managed to rise by around 25 percent within two months. At Ethereum (ETH) the performance over this period was even greater. ETH saw an increase of no less than 118 percent.
In the meantime, the Bitcoin race is moving around the 5dollar. Yesterday it was even above $ 117,000. Chairman of the US Central Bank Jerome Powell gave the market a big boost, against expectations, in hinting to an upcoming interest rate reduction.
Institutional interest is currently pulling the cart
A striking trend is visible in the past year: companies are rapidly building their cryptor reserves. At the same time, since the launch of American Spot Exchange-Traded Funds (ETFs), huge amounts of capital have flowed towards these funds. A considerable part of this comes from companies. For them, the ETFs form a simple, and in some cases even the only one to get exposure to crypto.
Strategy now owns nearly 630,000 Bitcoin. But it is no longer the only company that purchases on a large scale. Data from Bitcoin Treasuries show that there are now 172 listed companies the digital currency on the balance sheet. It is a total of almost 1 million bitcoins.
On Ethereum side, Bitmine has since grown into the largest institutional holder, with more than 1.5 million ETH in the books. There are ten other companies and in total they own nearly 2.8 million ETH, according to data from Coingecko.
Companies are also piling up their crypto via the spot ETFs. The Bitcoin funds currently manage around $ 146 billion. For Ethereum it is about $ 22 billion in managed assets.
The current intake shows that the confidence from the business community is great. And that’s a good sign. It means that private investors can still enter to further increase the prices. But there is also a risk. Historically, there is often a phase of euphoria when retail enters en masse. And it is precisely that moment that usually marks the end of the bull market.
Source: https://newsbit.nl/bitcoin-jaagt-kleine-investeerders-weg-waarom-dit-positief-kan-zijn/
