Bitcoin Price Driven by Institutional Demand
Recent data suggests that the recent surge in the price of Bitcoin is primarily fueled by institutional investors rather than retail investors. The number of new Bitcoin addresses being created daily has decreased, indicating a lack of retail participation in the current bull run. Analysts believe that institutional players, such as financial companies like BlackRock and Grayscale, are responsible for the positive performance of the flagship cryptocurrency.
Institutional Whales Increase Activity
Furthermore, BTC whale activity has reached its highest level in over 20 months, according to analytics platform Santiment. This increase in activity supports the argument of increased institutional participation in the Bitcoin market.
Hot Take: Bitcoin’s Rally Driven by Institutional Investors
The recent rally in the price of Bitcoin can be attributed to institutional investors rather than retail investors. The decline in new Bitcoin addresses being created daily suggests that retail participation is low. On the other hand, there has been an increase in BTC whale activity, indicating increased involvement from institutions. This shift in investor behavior highlights the growing importance of institutional players in the cryptocurrency market.
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