The landscape of cryptocurrency trading is experiencing a seismic shift, with U.S. investors taking the wheel in driving Bitcoin’s price surge, as per a CoinDesk report by Krisztian Sandor.
The data from K33 Research reveals that the U.S. market hours have become a hotbed for Bitcoin trading, contributing to 50% of the total trading volume and pushing Bitcoin’s value up by 30%.
This uptick in Bitcoin’s value is not a standalone phenomenon. It’s closely tied to the growing interest and active participation of institutional giants such as BlackRock, Fidelity, and Citadel. Their involvement has not only boosted investor confidence but also sparked a renewed wave of optimism in the market.
Interestingly, Bitcoin is carving its own path, moving away from the traditional U.S. equities like the S&P 500 and Nasdaq indices. This divergence, as noted by K33, is a clear sign of U.S. traders turning to Bitcoin as a unique asset class for diversifying their portfolios.
The recent move by BlackRock to file for a Bitcoin exchange-traded fund has further invigorated the institutional activity in the Bitcoin market. This has led to a surge in open interest on the Chicago Mercantile Exchange (CME) futures market, a platform favored by sophisticated investment firms.
Samir Kerbage, the Chief Investment Officer at Hashdex, a crypto asset management firm, views this shift in institutional interest as a pivotal moment for individual crypto investors. He asserts that unlike the past trends driven by short-term opportunistic fear of missing out (FOMO), the current wave of institutional interest is more deliberate and long-term focused. Once these institutions step into the crypto world, they are here to stay.