The Bitcoin price is finally showing some green again, but unfortunately we cannot say that the bear market is over yet. For this we need a longer period of green figures. Despite the long winter, many different types of holders have already started to accumulate quietly.
Accumulation has begun
if we do research of CryptoCompare, then pretty much the entire market is accumulating right now. That means the true believers are buying for the long term. The striking thing according to CryptoCompare is that we see that accumulation trend when Bitcoin itself goes through a moderate period. So moderate, in fact, that many people question Bitcoin’s capabilities as a protection against inflation.
So far, both Bitcoin and Ethereum have mostly traded against inflation. That’s because central banks around the world are responding to inflation with higher interest rates. That higher interest rate has made a lot of people decide to sell their digital assets. It is striking that the volatility of Bitcoin has decreased considerably compared to the last bear market. At the time, it was 79 percent, while Bitcoin is now at 63 percent.
Institutional money steps in
It seems that the big money has finally found Bitcoin as well. From the figures from the Nasdaq-listed Coinbase, we can conclude that roughly 25 percent of the 100 largest hedge funds in the world are affiliated with the American trading platform.
Last August, this percentage was still at 10 percent. Although the head of investment relations at Coinbase does indicate that most major funds are trying a little bit. There are no real major investments yet.
In that regard, it is likely that we will have to wait for certainty about legislation and regulations, which is still lacking, especially in the United States. It is therefore no surprise that we are still waiting for a US spot Bitcoin ETF. Something that has been around for a long time in other parts of the world.