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Investors from the traditional financial sector are buying Bitcoin at an unprecedented rate
Learn how traditional finance investors are buying up Bitcoin at “unprecedented” levels. The CEO of the analysis platform CryptoQuant states that these investors are currently accumulating 6,896 BTC per day. According to experts, this unusual collecting behavior could lead to a liquidity crisis. Read the article to find out more about the background and forecasts.
Investors from the traditional financial sector are buying Bitcoin at an unprecedented rate
Investors from the traditional financial sector are buying up Bitcoin (BTC) in “unprecedented” quantities, according to the co-founder and CEO of analytics platform CryptoQuant. Ki Young Ju told his 335,600 followers on social media platform This accumulation address cohort shows no outflows.
Young Ju also predicts a liquidity crisis on the sell side of Bitcoin this year. Institutional investors have been pouring fresh capital into exchange traded funds (ETFs) and it is expected that several million BTC could be held this year. For comparison, exchanges, mining operators and associated addresses currently hold 3 million BTC.
Grayscale, a leading provider of crypto investment funds at the time of the press release, has converted its existing flagship fund, the Grayscale Bitcoin Trust (GBTC), into an ETF listed on the NYSE Arca exchange. On U.S. approvals of BTC ETFs Securities and Exchange Commission (SEC) in January were new products, with the exception of Grayscale.
At the time of this article, Bitcoin price is at $66,241 and has gained almost 4% in the last 24 hours.
Table of the current top 10 cryptocurrencies by market capitalization:
| rank | currency | Market capitalization (USD) |
|---|---|---|
| 1 | Bitcoin (BTC) | $1,256,789,034,659 |
| 2 | Ethereum (ETH) | $442,153,748,480 |
| 3 | Binance Coin (BNB) | $85,437,297,301 |
| 4 | XRP (XRP) | $78,358,827,687 |
| 5 | Cardano (ADA) | $71,303,529,904 |
| 6 | Dogecoin (DOGE) | $64,981,756,291 |
| 7 | Polkadot (DOT) | $37,973,171,750 |
| 8 | Uniswap (UNI) | $26,213,768,654 |
| 9 | Litecoin (LTC) | $25,769,789,735 |
| 10 | Chainlink (LINK) | $21,085,937,673 |
As mentioned earlier, investors from the traditional financial sector are currently buying a large amount of Bitcoin. This development comes at a time when cryptocurrencies are gaining traction in general. Bitcoin continues to be considered the most popular and valuable cryptocurrency, with a current market capitalization of over $1.2 trillion. Ethereum, the second largest cryptocurrency, follows with a market capitalization of over $400 billion. This highlights the rise of cryptocurrencies as an asset class and the growing interest of traditional investors in this space.
Grayscale, one of the largest players in crypto asset management, has decided to convert its Grayscale Bitcoin Trust (GBTC) into an ETF. This follows the approval of several BTC ETFs by the SEC and shows the growing confidence and acceptance of traditional financial institutions in the digital asset market.
The unprecedented accumulation of Bitcoin by traditional financial investors and the expected liquidity crisis on the sell side could indicate that Bitcoin will see further price increases in the coming months. However, it remains to be seen how the market will develop and whether the predictions will come true. It is important to note that the cryptocurrency market is volatile and investing in digital assets involves risks.
Note: This article does not constitute investment advice. Investors should always conduct their own due diligence and think carefully about whether to invest in the cryptocurrency market.