There is evidence that Bitcoin is the bear market is almost over. After all, we have been in a trend of falling prices for more than a year, and logically this will change sooner or later. According to the market researcher Matrixport, institutes cannot be discouraged yet, they even represent the majority of buyers.
Institutions are still buying bitcoin
Cointelegraph writes about a January 27 survey from Matrixport. It shows that 85% of all bitcoin (BTC) buyers are US financial institutions. Despite the fact that prices are falling, professional investors are still investing in cryptocurrencies. 35% of green prices take place during US trading hours.
Whether BTC is the favorite of these companies is not entirely clear. Cointelegraph spoke with Markus Thielen, director of Matrixport’s research and strategy division. “If history is any indication, other layer 1 tokens and altcoins would outperform BTC. It is not clear whether institutions are already investing in altcoins on a large scale. Altcoins have a much smaller market value and are thus theoretically riskier.
The research does mention that ethereum (ETH) also does particularly well during US trading hours. The same applies to Lido DAO (LDO). The same applies to Aptos, although this token also performs well when the sun is shining in Asia.
Crypto bull market in sight?
The research concludes that this is basically good news for bitcoin. That could mean that a new bull market is developing. Two weeks ago we wrote about another clue that could mean the same thing. A major crypto investor expects a new upward trend once US inflation is around 4 to 5%.
However, it should also be emphasized that institutions have deeper pockets than smaller retail investors. The crypto market is extremely small compared to other financial markets, investing in crypto is often a side issue for institutions.