Large actors took advantage of the period of price falling to build up their positions.
The pandemic has forced market participants to change their investment strategies in BTC. Analysts at OKEx trading platform came to this conclusion, as part of their research.
The specialists drew attention to changes in the behavior of two groups of investors: private and institutional. According to the observations of OKEx, the latter took advantage of the fall in prices during the pandemic to build up their positions.
Private investors, in turn, have chosen an observant position. This category of analysts included users with a small amount of BTC on their wallets, who usually conduct small transactions.
Statistics indicate a decrease in the number of transactions, amounting to 0.1 BTC, against the backdrop of “Black Thursday” in March 2020. After the fall of the indicator, the local maximum was recorded in July 2020 – a month before the breakthrough of bitcoin at the level of $ 12,000.
According to OKEx researchers, the decrease in the volume of small transactions indicates that private investors have taken a wait and see attitude.
Institutions, whose transactions exceed 1,000 BTC, were less cautious, experts say. Their trading volumes recovered from the March 2020 downturn. According to analysts, the designated group of investors showed particular activity against the background of the breakthrough of bitcoin at the $ 10,000 level.
The OKEx team suggests that institutional interest in BTC can be explained by the choice of quantitative easing policies by financial institutions. The latter implies the fight against economic problems through printing and pouring additional lots of fiat into the market. This approach can negatively affect the value of the currency. Bitcoin is protected from inflation by limited emission unlike fiat.
Comparison of graphs showing changes in the volume of transactions:
Earlier, Dan Tapiero, co-founder of Gold Bullion International and 10T Holdings, put forward a theory according to which institutionalists will enter the digital asset market through an interest in gold.