Institutional investors may have more of an influence over the price of Bitcoin (BTC) than many might believe.
As detailed in a recent article by Bloomberg, JPMorgan (JPM) strategists led by Nikolaos Panigirtzoglou published a report on Friday with data from CoinMarketCap asserts that the gap is closing between retail and institutional Bitcoin trading volumes. Recent reports by Bitwise found the actual volume of bitcoin trading on cryptocurrency exchanges in May was around $36 billion while the estimated aggregate volume on the CME and Cboe futures contracts was roughly $12 billion.
“The overstatement of trading volumes by cryptocurrency exchanges, and by implication the understatement of the importance of listed futures, suggests that market structure has likely changed considerably since the previous spike in Bitcoin prices in end-2017 with a greater influence from institutional investors,” JPMorgan concluded.
This influence looks to be continuously growing as data shows that the estimated futures volume in April stood at around $5.5 billion while the first-quarter of 2019 only saw a monthly average of $1.8 billion.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.