- Bitcoin surged 30% during US trading hours, accounting for 50% of total trading volume, according to K33 Research.
- Bitcoin and US stocks are negatively correlated, suggesting that Bitcoin was bought for diversification purposes.
- The CIO of Hashdex said the increased institutional activity “could usher in a generational moment” in cryptocurrency adoption.
US investors are turning to buying Bitcoin (BTC) as institutional activity picks up, driving the recent rally.
Rise in US trading hours
Cryptocurrency analytics firm K33 Research said in a report that recent Bitcoin price increases and trading volumes were concentrated during U.S. trading hours, a key driver of Bitcoin’s strength. I pointed out that it is.
Bitcoin has surged 85% so far this year, outperforming most other crypto assets, according to CoinDesk data. The rise comes as a number of financial giants, including BlackRock, Fidelity and Citadel, have increased their involvement in Bitcoin, fueling investor optimism. Sometimes.
Smaller crypto assets, meanwhile, have struggled amid increased regulatory scrutiny over whether they fall under unregistered securities. Some exchanges have refrained from offering popular crypto assets to avoid risk.
Since bitcoin hit a low near $16,000, its cumulative gains during US trading hours have risen by about 30%, significantly outpacing gains during trading hours in Asia and Europe. U.S. activity spiked after BlackRock filed for a Bitcoin exchange-traded fund (ETF) on June 14.
Negative correlation with US stocks
Bitcoin’s recent rally has broken its correlation with the performance of US stocks such as the S&P 500 and the Nasdaq Composite. K33 Research noted that the 30-day correlation between Bitcoin and these U.S. stocks turned negative last week for the first time since January 2021.
K33 Research Senior Analyst Vetle Lunde noted that as part of portfolio diversification, “it shows that American traders are allocating to Bitcoin for peculiar reasons.” .
Increased involvement of institutional investors
BlackRock’s ETF filing has also boosted institutional investor activity in the Bitcoin market.
Open interest in the Chicago Mercantile Exchange (CME) futures market, a favorite among crypto-savvy investment firms, is nearing a record high, according to data from K33 Research.
A report released this week by asset manager CoinShares showed that inflows into digital asset funds last week hit a record high of $199 million in almost a year. Bitcoin-focused funds accounted for 94% of all inflows.
Samir Kerbage, CIO of asset manager Hashdex, said recent activity marks a tipping point in the adoption of crypto assets by institutional investors. . “At some point, we may have a generational change moment for individual crypto investors,” he said.
Carbage added, “The current institutional interest we’re seeing is driven by opportunistic ‘FOMO’ (missed opportunity) that could push prices up in the short term, as we’ve seen in the past. “Far from the fear of missing out.” .
｜Translation: coindesk JAPAN
｜Editing: Rinan Hayashi
｜Image: K33 Research/TradingViewa
｜Original: US Investors Are Driving Bitcoin’s Price Surge as Institutional Demand Rises