Institutional investors are dominating Bitcoin transactions.
Data shows that institutional investors are playing an important role in Bitcoin transactions.
Data from blockchain analytics platform IntoTheBlock indicates that currently over 99% of all Bitcoin volume comes from transactions of over $100,000.
The report also revealed that institutional investors began to increasingly adopt Bitcoin from the third quarter of 2020. Since then, the share that large transactions volume has consistently remained above 90%, dominating the market.
Tesla and MicroStrategy are already well known for their bitcoin holdings. They are being followed by many renowned players in 2022.
Despite such a spectacular level of adoption, the amount of bitcoin held by miners has reached a 10-year low. However, Bitcoin addresses with a balance reached a record of nearly 40 million. Another notable observation is that the Bitcoin hash rate is near record levels, while prices have dropped.
The report says, as the demand-side continues to strengthen, the supply-side of crypto is becoming less relevant.
But, institutional investors and even nation-states have begun to dominate the investment side of the crypto space. Institutional investors may also lobby their respective Governments to formulate laws favourable for crypto.
News recommendation: EU Might Ban Bitcoin and Ethereum