Bitcoin (BTC) on Track for Best January Since 2013 Led by Bullish Trading in United States Hours

Bitcoin (BTC) has rallied almost 40 percent since Jan. 1, on track for its best opening to a year since 2013, when it surged 51%.

Bitcoin (BTC) is having its best start to the year since 2013. The price of the largest digital currency by market cap has jumped 40 percent these 30 days amid weakness in the United States dollar. The rally has been powered predominantly by stateside buyers, observers say.

• ” Bitcoin (BTC) is up +40 percent year-to-date with +35 percent of those returns occurring during U.S.-trading hours. That’s an 85 percent contribution of the rally associated with U.S.-based investors,” Markus Thielen, head of research and strategy at cryptocurrency services provider Matrixport, stated in a note to clients on Friday.
• “We interpret this as a clear signal that United States institutions are buyers of Bitcoin (BTC) right now,” Thielen added.
• Bitcoin (BTC) surged 51 percent in January 2013.
• In contrast to  stocks, Bitcoin (BTC) – and digital currencies more  traditionally – trade 24 hours, allowing observers to keep track of order flows across different timeframes and infer the source of buying or selling pressure.
• Institutions’ positive  tendency positioning is likewise evident from the renewed premium in Bitcoin (BTC) futures listed on the Chicago Mercantile Exchange.
• “Institutions are not only buying Bitcoin (BTC) spot; rather, we are likewise seeing consistently high premiums for perpetual futures. We interpret this as an indication that quicker institutional traders and hedge funds are actively buying the past few dip in cryptocurrency markets,” Thielen noted.
• Deutsche Digital Assets made a similar observation earlier these 30 days, drawing attention to the uptick in Coinbase Crypto exchange premium as evidence of increased buying interest from sophisticated U.S.-based investors relative to retail investors.
• “Traditional and crypto-focused hedge funds, corporates and traditional investment managers have been buying,” Coinbase Crypto exchange Institutional’s head of research David Guong wrote in a weekly market commentary published Jan. 20.
• Bitcoin’s institution-led positive  tendency turnaround can potentially be a positive indication for the United States equity market, seeing as the cryptocurrency’s record of bottoming out weeks ahead of the S&P 500.

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