Via shrimp and whales: are retail investors taking over the bitcoin market?
JPMorgan notes a decline in bitcoin appetite from institutional investors. But rising demand from retail investors shows: The bulls are far from exhausted.
Are institutional investors running out of ammunition? At least that is what a report by JPMorgan analyst Nikolaos Panigirtzoglou suggests. According to this report, the price drivers in the current quarter are not large investors as in previous months, but rather Crypto Superstar private investors, so-called retail investors. JPMorgan even provides tangible evidence for its thesis. After analysing public sales figures from PayPal and Square, for example – both of which are platforms where small investors invest in Bitcoin – the picture is clear
So far, 187,000 BTC went into Retail’s account in the first quarter of 2021. This compares to „only“ 173,000 BTC from institutional investors. By way of comparison: In Q4 2020, large investors still absorbed 307,000 BTC – a difference of 77 percent. How valid the figures are, however, is questionable. The JPMorgan analyst does cite publicly available sources such as futures volume or company data on bitcoin purchases.
However, BTC whales are sometimes shy animals and avoid public announcements about new accumulations. Moreover, even prominent buyers such as Tesla do not go public immediately, but accumulate BTC quietly at first so as not to influence the price to their disadvantage.
Bitcoin volume from institutional and retail investors
However, the basic trend seems to be valid; retail volume and institutional volume in the Bitcoin market are becoming more and more similar these days. In other words, the drivers of the bull market are no longer just large investors like MicroStrategy and Tesla.