The price of Bitcoin has risen in recent weeks and the digital asset could return to the level of November 2022. This is a much-needed boost for the market during this period, but an unexpected group of investors is reportedly driving the price of the cryptocurrency.
Bitcoin Surge Occurs During US Hours
In a recent Matrixport report shared with NewsBTC via email, US institutional investors are driving the recent rise in bitcoin prices. The report noted that in January, digital assets were up more than 40% but more than 35% of the increase occurred during US trading hours. As such, the research report concludes that US investors are driving the price.
Matrixport explained the reason for this by saying that the asset performed well during the US hours, especially those trading within 24 hours, indicating that institutional investors are buying the asset. However, if it is good during Asian hours, it means that Asian retail investors are buying.
BTC moves the most during U.S. trading hours | Source: Matrixport
The most significant movements have occurred at this time and the trend line shows a very similar to the movements of Bitcoin so far. But what’s even more interesting is the fact that the data shows that US-based investors are responsible for 85% of the total BTC purchases happening today.
What’s Driving US-Based Investors?
As the Matrixport report noted, US-based investors have been encouraged by slow inflation. It has put individual and institutional investors in a position where they believe they can take on more risk. Therefore, there is a clear increase in exposure to risk assets such as bitcoin.
BTC price rises over 40% in less than 30 days | Source: BTCUSD on TradingView.com
Furthermore, the report indicates that a further rally is likely due to the fact that inflation is expected to continue to decline. “This could set the crypto market up for a mid-month, monthly rally and trend where we see a strong rally from mid-month and some consolidation at the end of the month as traders take profits and miners sell calls.”
This is also good news for altcoins as Matrixport notes that historically, money flowing into bitcoin will eventually flow into other digital assets. So, this may mean that the market has not seen the last altcoin rally after these institutional investors started to spread their investments.
BTC is currently trading at $22,959 as of this writing. The coin has seen a small gain of 0.06% in the last 24 hours, but on a seven-day rolling basis, the digital asset is still doing well with a gain of 9.45%.
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