Small and retail investors keep up with institutional investors in terms of bitcoin purchases. Since the beginning of the year, they have bought more than 187 thousand military-technical cooperation.
Bitcoin flows have become balanced
Research data from JPMorgan Chase & Co suggests that small and retail investors bought the same amount of bitcoin as large institutional investors.
“Retail investors have already purchased over 187,000 bitcoins this quarter, up from about 205,000 last quarter. Companies and institutions bought about 173,000 bitcoins during this time period, ”writes Bloomberg.
While these statistics may not fully prove the complete adoption of cryptocurrency by users, they show that investment flows in bitcoin are becoming more balanced. The growth of bitcoin was influenced by both the activity of institutional investors, who massively bought bitcoin at the end of last year, and the community on Reddit, as well as small investors who bought BTC for incentive payments in the amount of $ 1400.
“For many retail traders, cryptocurrencies were the main source of income during the pandemic. Despite the fall in the stock market, Bitcoin has maintained a surprisingly strong bullish trend. Retail traders have perked up with the latest excitement surrounding the growth of the NFT token market and as incentive checks hit their bank accounts, ”said Ed Moya, Senior Market Analyst at Oanda Corp.
The rise in the value of bitcoin has led to the fact that more and more retail investors are trying to invest in cryptocurrencies, so the fear and greed index often remains in the green zone.
Fear and Greed Index score
Bitcoin is not going to end the bullish trend
Despite the correction, Bitcoin has no plans to end the bullish trend, which started back in the third quarter of 2020. This means that the price of the cryptocurrency will continue to increase as the interest of institutional and retail investors grows and will reach $ 100 thousand per unit by 2022.
William Quigley, Managing Director of Magnetic, stated in an interview with CNN Business that last year’s Bitcoin halving was the key driver behind the current BTC rally. In his opinion, history shows that in the next 12-18 months, bitcoin can rise in price by 300% – 500%.
This could attract even more retail investors to the cryptocurrency market. Bitcoin has risen sharply in value in September 2020. Changpeng Zhao, CEO of the popular digital asset exchange Binance, drew attention to the fact that Bitcoin could have realized a positive movement against the backdrop of the next issuance of stimulating checks to Americans in the amount of $ 1200.
The first payments, according to Forbes, many US citizens chose to spend on bitcoins. The explanation for this choice was the attempt by people to preserve assets during the period of destabilization of the financial market amid the coronavirus pandemic. Many Americans also planned to spend the next payments to buy bitcoins. According to Changpeng Zhao, the support of BTC by US citizens who received the checks had a positive effect on the state of the digital asset market.
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