Here’s when institutional investors will pour into the Bitcoin market

by James · October 5, 2022

Retail investors are suffering as a result of the latest developments in the cryptocurrency market, which started on September 13 when the US Federal Reserve released the CPI report. Bitcoin and other cryptocurrencies have been affected by the recent announcement that the Fed interest rate has increased by 75 basis points.

As a result of the news, BTC fell below the crucial $20,000 level. However, analysts reveal that large organizations and institutional investors are still making significant investments in Bitcoin, despite retail investors trying to sell their Bitcoin holdings out of fear.

Institutional investors may soon become more prevalent in the Bitcoin (BTC) market, with CryptoQuant CEO Ki Young Ju stating in a tweet that Bitcoin is currently trading at a price almost exactly equal to the projected entry price of institutional investors who have used Coinbase’s services.

Bright days for Bitcoin

Based on the volume weighted average on-chain price (OWAP) of BTC outflows on Coinbase, the analysis was performed. This technical indicator helps traders time their market entries and exits by comparing price to traded volume to identify whether a market trend is overbought or oversold.

$BTC The price now is close to the estimated entry price for institutional investors who have used Coinbase services such as prime brokerage, custody, etc.

If you still believe institutions drive this market, this bull opium may work for you. pic.twitter.com/goQTSnuCN7

— Ki Young Ju (@ki_young_ju) 5 October 2022

A price increase may be due to institutions entering the market at the current price. This is due to the notion that institutional investors, who are often whale-level investors, are responsible for the market’s bullish movements.

The analysis coincides with a period where a number of organizations have shown a growing interest in adopting cryptocurrency.

According to Bloomberg, Nasdaq, the second largest exchange by market capitalization, is the latest organization to announce ambitions to offer cryptocurrency services.

Although Nasdaq has impressive goals for cryptocurrencies, including growing to offer custody services to its customers, the company tells Bloomberg it is delaying the implementation of those plans to wait for more regulatory certainty for the sector.