Binance Research: Institutional pushing bitcoin price up

Binance researchers published a report stating that the cryptoindustrial industry continues to grow this year and the market is recovering due to the demand from a growing number of institutional investors.

In particular, analysts note the growing trading volume of bitcoin futures on the CME regulated exchange, which is in demand mainly among wealthy players. For example, on May 13, a record trading volume of 33,677 contracts ($ 1.3 billion in BTC) was recorded. At the same time, the number of accounts trading in this derivative has also grown - now there are more than 2500 of them.

“Institutional investors, according to our conservative estimates, now make up less than 10% of the total number of market participants. However, the influence of large players on digital assets and cryptocurrencies is growing. This can be seen at a premium of about 40% in the value of the assets of the Grayscale Bitcoin Trust (GBTC) in relation to the spot price of BTC, ”the researchers note.

In addition, large players actively use over-the-counter (OTC) platforms for trading. In this case, players who have not previously been associated with the blockchain and cryptocurrencies are involved in the industry.

Binance Research also concluded that the correlation of Bitcoin with other assets is still extremely close, which makes the first cryptocurrency "a leader for the entire industry." The increasing interdependence of prices of BTC and other assets also suggests that the market has reached a "bottom".

Among other things, analysts are paying attention to the growth of the Ethereum ecosystem.

Thus, the number of active ETH-addresses reached a 10-month maximum. In addition, the annual maximum volume reached onchain transactions. At the same time, cryptocurrency capitalization reached the highest value in the last 8 months.

In terms of individual sectors, analysts state the leading positions in projects related to public networks and BaaS platforms (Blockchain as a Service), cloud computing, Big Data, artificial intelligence and entertainment.

Experts also point out a significant increase in the market share of steyblockcoins and a significant decrease in the supply chain.

Recall that last month at Binance Research found that since the beginning of the year, the profitability of investment in Bitcoin surpassed traditional assets, including oil, technology companies, real estate and gold.