Skip to main content

Bitcoin's Rise Driven by Institutional Trading, Says Research and Investor Sentiment


The cryptocurrency bitcoin is trading at an all-time high relative to its social activity, explains the crypto research firm Tie. 

The analysts at Tie believe the ratio indicates that bitcoin is being driven by institutional trading. 

Meanwhile, statistics from Google Trends shows the terms “bitcoin” and “buy bitcoin” dropped from the 100 point highs to 65 on June 14, 2020.

Tie Research: ‘Market Cap Increasing More Than Social Media Activity May Suggest Bitcoin Is Now More Driven by Institutional Trading’

This week the research firm the Tie tweeted about bitcoin’s (BTC) social activity to the company’s 6,300 Twitter followers. The company thinks that institutional interest and trading is a driving force right now. “Bitcoin is trading at an all-time high (ATH) relative to its social activity,” the Tie tweeted on Thursday.

“Increasing NVTweet Ratio may suggest BTC is now more driven by institutional trading as market cap is increasing faster than social volume. NVTweet Ratio = Market Cap / 1M / 30Day Average Tweet Volume,” the researchers added.

Bitcoin's Rise Driven by Institutional Trading, Says Research and Investor Sentiment
The Tie researchers data on “Increasing NVTweet Ratio.”

A number of speculators believe that institutional interest has been involved with the cryptocurrency market ecosystem for quite some time now.

On Friday, one of the top banking firms in Japan, Nomura launched it’s highly anticipated custody service for the company’s institutional clientele. The service called “Komainu” is a partnership between Nomura and Coinshares and Ledger. Moreover, the research team at Fidelity Digital Assets revealed in a recent report that out of 800 institutional investors worldwide, 36% have invested in crypto assets.

Billionaire Investor and Galaxy Digital Founder Mike Novogratz: ‘This Is the Time for Bitcoin’

Discussing the subject of institutional interest toward bitcoin (BTC) with the fintech journalist Paddy Baker, Galaxy Digital founder Mike Novogratz said his company would “suck” if institutional investors don’t come around.

Bitcoin's Rise Driven by Institutional Trading, Says Research and Investor Sentiment
Galaxy Digital founder Mike Novogratz.

“Bitcoin specifically is a story about adoption,” the billionaire Novogratz told Baker. “And the next big group that’s going to adopt bitcoin as a store of value, as a digital gold, are the financial advisers.”

On June 12, Novogratz also appeared in an AIM Summit video broadcast sponsored by Invictus Capital and said:

This is the time for bitcoin.

Google Trends Shows Retail Interest Sees a Lull

It may have something to do with the coronavirus economy, but retail investor-based interest in digital assets seems to be lacking these days. Google Trends data shows that the searched term “bitcoin” is lower than it was on the week of May 10 through the 16th. At that time, the term “bitcoin” had a score of 80 out of 100 points.

Today, Google Trends (GT) shows the number tied to the term has dipped to 44 points. The phrase “buy bitcoin” used to be at the highest level of 100 on that same May 10-16 week, but today “buy bitcoin” is around 66 points for GT data.

Bitcoin's Rise Driven by Institutional Trading, Says Research and Investor Sentiment
Google Trends (GT) data for Friday, June 19, 2020, is 66 points. On the week of May 10-16, the “buy bitcoin” phrase touched 100 points.

On Thursday, news.Bitcoin.com covered a number of economists and macro traders on Twitter who are extremely optimistic toward bitcoin’s future performance. The “bitcoin price target is set at five times the prior high,” explains a Finsmes crypto market analysis on June 18.

“Finally, bitcoin is no longer an asset that exists solely in the digital universe. Instead, bitcoin futures trade alongside other commodities on the Chicago Mercantile Exchange. Institutional investors are taking a bigger interest in bitcoin and the broader cryptocurrency industry,” the Finsmes bitcoin price analysis further noted on Thursday.

What do you think about institutional trading driving bitcoin’s rise? Let us know in the comments section below.

Source: news.bitcoin.com

Comments

Post a Comment

Contact us

Name

Email *

Message *

Popular posts from this blog

Cryptocurrencies Adding to the Safety and Security in the UK Gambling Industry

These are exciting times for the UK gambling industry. The impact of internet technology is now being felt with online gambling now controlling the industry.  The adoption of cutting-edge technology is reasonable for the boom in the industry. From live casinos, mobile apps to artificial intelligence, incredible trends continue shaping the gambling industry. However, it is the rise of cryptocurrency casinos that seeks to redefine UK gambling.  Many operators now include crypto coins such as bitcoin, Ethereum and Litecoin as part of their banking methods. Others offer exclusive bitcoin payments and promotions based on digital tokens. This revolutionary trend has a huge impact due to enhanced safety and security on these platforms. Players looking for peace of mind when playing online now opt to use cryptocurrencies. This post looks at how cryptos guarantee the safety and security of players at online casinos. How Cryptocurrency Gambling Works There’s a lot of talk about cryptocurrency,
Post a Comment
Read more

Will Solana (SOL) Be the Shining Star of the Bull Market?

About 250,000 to 700,000 SOL have been sold daily by FTX for the last three weeks. SOL’s price jumped above $60, as GSOL’s premium also increased. While the price may retrace, it may not take long before SOL hits $70. Despite being a notable casualty of the FTX contagion in 2022, Solana (SOL) has defied all odds in 2023, as the price continues to outshine its peers. In the last 30 days, the value of SOL has increased by 180%, rising as high as $62 on November 11. However, the rising price of SOL is not the only interesting thing the token has shown by the token. For a token that was once described as dead, it has shown tremendous strength. Coin Edition came to this conclusion because of a post by trader Bluntz Capital. The Big Players Are Here According to Bluntz, FTX, after getting the go-ahead to liquidate its assets, has been selling around 250,000 to 700,000 daily for the last three weeks. Regardless of the sales, SOL has failed to nosedive. Rather, the price has chosen the upside
Post a Comment
Read more

Terra Classic Community Passes Major Constructive Proposal, LUNC And USTC To $1?

  The Terra Luna Classic community has passed another key proposal as they prepare for a revival of Terra Luna Classic (LUNC) and repeg USTC stablecoin to $1.  The proposal aimed at having a guideline for a pay-per-job approach on the Terra Classic chain as core developer L1TF goes into maintenance mode for Q4. Meanwhile, the community is also collaborating on other fronts to keep LUNC and USTC above key support levels as traders started booking profits amid the latest pullback in the crypto market. Terra Luna Classic Passes Pay Per Job Proposal Proposal 11889 “Pay-per-job and governance-ruled Job List” has passed successfully. The proposal deemed the monthly model of roadmap and payment planning as suboptimal and plans to switch to a pay-per-job model. The proposal has received 91.99% “Yes” votes, with others mostly voting “Abstain”. The community believes it will optimize compensation structure, provide flexibility and transparency, boost community engagement, and risk mitigation. A
Post a Comment
Read more