• According to a report, 99 percent of ‘Large Transaction’ Bitcoin Trading Volume is generated by institutions

  • According to new data, institutional investors are playing a growing role in Bitcoin transactions, trading, and investment.

    According to IntoTheBlock data, institutional investment accounts for the vast majority of all bitcoin transaction volume over $100,000.

    According to IntoTheBlock’s study, institutional interest in cryptocurrencies has increased since the third quarter of 2020, with the share of institutional transaction volume never falling below 90%. Since the third quarter of 2020, corporations such as Paypal and Tesla have plunged their toes into the Bitcoin pool, resulting in highs throughout 2021. Tesla and MicroStrategy have both added billions of dollars in bitcoin to their balance sheets, with the former purchasing BTC as a strategic primary reserve asset.

    According to the report, miners are now playing a smaller role in the ecosystem, as the amount of BTC they hold has reached a ten-year low, while the bitcoin hash rate (collective power used to mine new bitcoins) has reached high levels, both of which have put pressure on miners’ profitability, prompting many to sell a portion of their holdings.

    Bitcoin is performing similarly to stock markets.

    According to the paper, while Bitcoin has historically recorded highs in unison with peaks in institutional investment, it has recently reacted similarly to equities, defying the previous trend. The stock market is currently feeling the effects of high inflation in the United States, which has been hastened by the Russia-Ukraine crisis.

    Despite the disparity between institutional investment and recent bitcoin price swings, additional key on-chain data indicates that the number of Bitcoin wallets with a non-zero value has hit 40 million, while addresses with a positive Ether balance has surpassed 70 million.

    Cryptocurrency outperforms major technology stocks in terms of returns.

    Despite a price decline at the start of 2022, bitcoin outperformed the top six technology stocks on Feb. 13, 2022, with an average return of 12.24 percent. Many economies have had interest rates near to zero, making BTC a perfect instrument for institutions that see crypto assets as one component of a diverse portfolio of other assets.

    Bain Capital raised $560 million for a crypto fund, and Pantera Capital raised $1 billion, adding to the growing number of high-profile firms hopping on the bitcoin bandwagon. Wall Street hedge funds are pouring billions of dollars into cryptocurrency, and Sequoia Capital is launching a $500 million-$600 million crypto fund.

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