The head of research and strategy at Matrixport says the industry will soon see Layer 1 and other altcoins performing well relative to bitcoin.
According to a chief strategist at Matrixport, institutional investors are “not giving up on crypto,” with recent data showing that up to 85% of bitcoin purchases are the result of US institutional players
Marcus Thielen, head of research and strategy at the Financial Services Institute, told Cointelgraf that the evidence shows that institutions are “not abandoning the crypto walk” and that this is a sign that we are now entering a new “crypto bull market”. We are.
This fact was shared by Matrixport in a report released on January 27, which shows that distinguishing whether retail and institutional investors or digital assets are more favored at any given time depending on whether Whether it performs well in the US or Asia for business.
If a property trading 24 hours a day in U.S. business hours “performs well,” it indicates that U.S. firms will buy it, while properties showing growth in Asian business hours indicate that Asian retail, the report said Investors will buy them
The report referred to that bitcoin
This year is up 40%, with 35% of the returns occurring during U.S. trading hours, meaning an “85% contribution” linked to U.S.-based investors, indicating that U.S. firms are now buyers of bitcoin
Thielen also said that past data shows that institutions typically start buying bitcoin first before investing in other cryptocurrencies. He observed that:
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“If history is any guide, we should see Layer 1 and altcoins outperform relative to bitcoin.”
While the report highlights that news about other projects positively impacted the price of tokens such as Lido DAO (LDO) Aptos
, the crypto rally only began when US inflation data was released on January 12th.
It was also called ether
While it appears to be outperforming in US hours, indicating “institutional flux” in cryptocurrencies, APT continues to outperform around the clock
“Aptos sees a mix of strong returns during US trading and during Asian trading.”
The report concludes that this “could be a very positive sign for bitcoin” as institutional adoption continues.
Related: Statistics show pro bitcoin traders want to feel bullish, but a rally to $23K wasn’t enough
In earlier comments to Cointelegraph, economist Lynn Alden believes bitcoin is currently playing “a little bit of catch-up,” getting back to where it was without the FTX collapse
Alden cautioned that there are “considerable risks ahead” for the second half of 2023, citing liquidity conditions as “good right now” in part as an important U.S. factor
As the U.S. Treasury reduces its cash balance to keep the country’s debt levels low, it is pushing “liquidity in the financial system,” Alden explained.
Meanwhile, popular trader and market commentator TechDave published a Twitter update on January 26 showing the price correlation between bitcoin and gold to “crack up to the $50,000 mark” if bitcoin continues to follow gold prices can be used.