In 2021, retail investors are the main drivers of Q1 bitcoin boom From JPMorgan Chase

The following is the In 2021, retail investors are the main drivers of Q1 bitcoin boom From JPMorgan Chase recommended by And this article belongs to the classification: Bitcoin.

At a time when the online bonus stocks are soaring and plummeting, bitcoin has become the “way to make a living” for retail trading, and the purchase volume is on a par with that of large banks and institutions. Some people think that bitcoin broke through the record high of US $60000 and soon fell sharply, indicating that institutional investors, who led the sharp rise in the price of bitcoin last year, are taking advantage of the admission of retail investors to take profits. Over the past weekend and on Monday, bitcoin went up and down again in just a few days, reaching an all-time high, and then plummeted by several thousand dollars. This just shows the game between WSB “retail tiantuan” and large institutional investors.

After combing the data of square, paypal and other payers who accept bitcoin, JPMorgan found that retail investors had purchased more than 187000 bitcoins as of this quarter, and 205000 in the fourth quarter of last year.

In contrast, the capital flow of bitcoin futures, investment funds and corporate announcements reveal that institutional investors bought about 173000 bitcoins in the current quarter and nearly 307000 in the fourth quarter of last year.

This means that after the strong entry of institutions last year pushed the rise of bitcoin, retail investors began to “take orders at a high level”. The purchase volume of these “little people” in the cryptocurrency market is gradually comparable to that of large banks and institutions, and the bitcoin market is breaking the situation dominated by institutional investors.

Ed Moya, senior market analyst at OANDA Corp, a foreign exchange broker, pointed out that the recent popularity of NFT (non homogenous token) has made us retail investors active again, and the $1400 stimulus check per person has also arrived

“For many retail traders who exchange money, bitcoin is the way to make a living in COVID-19. Many people have lost a lot because of the ups and downs of online bonus stocks, but bitcoin has maintained an amazing bullish trend, which makes most people become winners. “

On Saturday, March 13, after U.S. President Biden signed the $1.9 trillion stimulus bill into effect, bitcoin broke the $60000 round mark for the first time in its history, and won another $61000 on Sunday.

In the past three and a half months of this year, the price of bitcoin has doubled. At the end of last year, it was traded at US $29000, a record high of 13 times in 12 months. With the support of institutional investors, bitcoin increased tenfold last year, and soared 170% in the fourth quarter alone.

Led by bitcoin, Ethereum, the second largest cryptocurrency by market value, also rose to an all-time high over the weekend. However, after midday trading in Asia on Monday, bitcoin quickly fell below the US $55000 mark, down more than US $5000 from the daily high, down 9% in 24 hours. This dragged other mainstream cryptocurrencies down. By midday on Monday, bitcoin was back above $56000.

The analysis points out that bitcoin’s sudden decline after hitting a record high is not only related to the news that India plans to legislate to ban cryptocurrency, but also due to the temporary weakening of purchasing pressure from institutional investors.

Mike Novogratz, bitcoin’s staunch bullish, billionaire and founder of Galaxy digital, said the weekend’s record high was mainly due to the retail craze after the fiscal stimulus checks arrived. Mizuho Securities also estimates that about 10% of stimulus checks in the United States may be used to buy bitcoin and stocks, totalling about $40 billion. Others believe that institutional investors are taking advantage of the admission of retail investors to take profits.

Zerohedge, a financial blog known for its venomous tongue, quoted Mike Novogratz as saying:

“The question of how much money we are printing is in an unknown area, and bitcoin is a report card for real life. Rather than a bubble, bitcoin is the last fire alarm that is still running.”

Philip swift, co-founder of decentrader, an American market analysis firm, believes that $70000 is bitcoin’s next stop. Antoni trenchev, co-founder and managing partner of NEXO in London, said that every price correction is a buying opportunity and an opportunity to get ready. “The resilience of bitcoin is legendary.”.

Google Trends: data show that the search volume of “buying bitcoin with credit card” has reached an all-time high JPMorgan: bitcoin’s long-term price may rise to US $146000, repeat in 2017: what is the market trading behind bitcoin’s surge? University of Sydney: research shows that nearly half of bitcoin transactions involve illegal activities. Blockchain: in April 2018, 17 million bitcoins have been dug up. Coinmarketcap: in November 2017, the total scale of global cryptocurrency exceeded US $300 billion. Coinmarketcap: in November 2017, the market value of global digital currency exceeded US $200 billion. Cambridge University: in 2019, the power consumption for bitcoin mining exceeded that of Switzerland CCAF: Global bitcoin mining power consumption exceeds 7 gigawatts Computing power over 120eh / s Morgan Stanley: it is estimated that the total power consumption of global digital currency mining in 2018 will exceed that of Argentina. Goldman Sachs: bitcoin does not have the three traditional functions of currency. Coinmarketcap: in December 2017, the market value of global cryptocurrency exceeded US $600 billion. Nearly 75% of Europe’s top economists believe that bitcoin is not a systemic financial risk. Barron: bitcoin is hot Impact on Wall Street: Google searches “buy bitcoin” more frequently than “buy gold”

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