• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news today, price & technical analysis
Price & Market
Cap Data from
Nomics Logo
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • TradeeToro
  • Invest BTCTry
  • Join STC ICOBuy
No Result
View All Result
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • TradeeToro
  • Invest BTCTry
  • Join STC ICOBuy
No Result
View All Result
NewsBTC
No Result
View All Result
Price & Market
Cap Data from
Nomics Logo
Home Cryptocurrency news Bitcoin

Was The Bitcoin Rally to $14,000 Catalyzed by Institutions?

Nick Chong by Nick Chong
2 years ago
in Bitcoin
Reading Time: 3min read
Was The Bitcoin Rally to $14,000 Catalyzed by Institutions?
Advertisement

The Bitcoin price has been on an absolute tear of the past year. Despite the cryptocurrency currently trading some 20% lower than its $14,000 year-to-date high, BTC is still up some 200-odd% since January 1st.

With this move, many have been left wondering, “who the hell is behind the crypto market’s resurgence?”

Related Reading: Major Online Swiss Bank Integrates Bitcoin Custody, Boost in Institutionalization

Retail investors are what many first looked to. You see, in 2017, Bitcoin’s move from $1,000 to $20,000 was widely believed to be a byproduct of retail FOMO, with mom & pop investors across the globe siphoning billions into the market as they saw news headlines mentioning BTC.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

But, the retail theory was widely disregarded when the industry discovered that Google Trends results for the “Bitcoin” term were still in bear market levels, implying another group is at work.

This group, according to more and more sets of data and anecdotal evidence, is institutional players.

Who Led the Bitcoin Rally?

For some reason or another, the cryptocurrency community has found a home on Twitter. There, the most active investors — everyone from kids looking to win giveaways to hedge fund managers sharing their thoughts on why Bitcoin will “moon” — talk crypto.

Thus, many data firms and analysts have found that it makes sense to use social media data and volumes to paint a picture of the cryptocurrency market.

In a recent Twitter post, a multi-faceted crypto data platform, The TIE, explained why it believes Twitter is showing that Bitcoin’s rally from $3,150 to $14,000 in the past eight to nine months is a byproduct of institutional investment.

They wrote that the NVTweet (network value-to-tweet) Ratio — which is defined by the following equation, Network Value divided by one million divided by the 30-day average volume of “Bitcoin” tweets — hit an all-time high of 6.84 in late-June, when BTC was approaching $14,000.

As tweet volumes are not rising as fast as market cap, an increasing NVTweet ratio may reflect increasing institutional investment in crypto. 2017 was retail driven (over 75K daily tweets), whereas this run is significantly less- we haven't seen more than 40K daily tweets in 2018 pic.twitter.com/20jfAf5bTf

— The TIE (@TheTIEIO) September 3, 2019

The TIE writes that this means that “Bitcoin was trading at its highest multiple of tweet volume ever recorded”. They claim that this, coupled with the fact that tweets about the cryptocurrency have been slow to increase in frequency, is a sign that retail isn’t as influential in this rally as in 2017, implying institutions are driving BTC.

This comes shortly after Coinbase CEO Brian Armstrong stated that there is around $200 million to $400 million worth of cryptocurrencies deposited into Coinbase’s coffers each week from “institutional customers”.

Also, Bitcoin’s correlation with macroeconomic events — namely the U.S.-China trade war — is purportedly a sign that macro hedge fund managers are dipping their toes in the BTC markets.

Related Reading: HODL: 79% of Bitcoin Addresses Are in Profit, Will They Sell?

Further Upside in Crypto Markets

With institutions seemingly entering the game, analysts are only expecting for Bitcoin to further appreciate. Speaking to Bloomberg last week, Mike Novogratz of Galaxy Digital stated that he believes institutions are setting Bitcoin up for its next leg higher. In a previous interview, he stated that institutional adoption will be responsible for BTC’s next move to at least $20,000:

“I’m not selling the next time we hit $14,000. The second time we reach that level, [there may be] a move to $20,000. I don’t expect this to happen in the next few weeks: I don’t expect it to the middle or the end of the fourth quarter. But the next wave will come when the institutions — the state of X, Texas Teachers Union, and those guys — come in, and then you will see Bitcoin hit $20,000 and higher.”

Novogratz isn’t postulating. Just look to Bakkt, the New York Stock Exchange-backed crypto exchange slated to launch its Bitcoin futures product in some three weeks. Sam Doctor of Fundstrat Global Advisors claims that there is an “critical mass” of institutions ready to adopt Bakkt.

Related Reading: Hong Kong Retail Outlets Begin Accepting Crypto as Tensions Escalate
Featured Image from Shutterstock
Tags: bitcoincryptocurrency
TweetShare
Nexo Logo
BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner? Win up to $1,000,000 in One Spin at CryptoSlots
Nick Chong

Nick Chong

I am a writer who has been following Bitcoin for years now. My insights and interviews have been featured in leading publications in the industry such as LongHash and Decrypt. I own a small amount of Bitcoin.

Related Posts

Latest Bitcoin Dip Did Little In Offsetting "Wildly Bullish" Bias; Here's Why

Latest Bitcoin Dip Did Little In Offsetting “Wildly Bullish” Bias; Here’s Why

24 hours ago
Billionaire Puts £175mn London Apartment up For Sale, Will Accept Bitcoin

Billionaire Puts £175mn London Apartment up For Sale, Will Accept Bitcoin

1 day ago
bloody bitcoin

Coinbase COIN Debuts To A Bloody Bitcoin, But Bullish Structure Remains

2 days ago
Brandt: You’re Doing it Wrong if You Accumulate Dollars Over Bitcoin

Brandt: You’re Doing it Wrong if You Accumulate Dollars Over Bitcoin

2 days ago
Bitcoin BTC BTCUSD

How An Ex-CIA Director Proved Bitcoin Use in Crime is Declining

3 days ago
Bitcoin BTC BTCUSD

Bitcoin Funding Flips Bullish, But Are Liquidations Imminent?

3 days ago

Premium Partners

Top Brokers

eToro

eToro

Review · Visit
Evolve Markets

Evolve Markets

Review · Visit
Bybit

Bybit

Review · Visit
ArbiSmart

ArbiSmart

Review · Visit
PrimeXBT

PrimeXBT

Review · Visit
Moneta Markets

Moneta Markets

Review · Visit

Top Casinos

BitStarz

BitStarz

Review · Visit
mBit

mBit

Review · Visit
CryptoGames

CryptoGames

Review · Visit
Bonusfinder DE

Bonusfinder DE

Review · Visit
Bspin

Bspin

Review · Visit
Wolf Bet

Wolf Bet

Review · Visit

Top Sportsbooks

1xBit

1xBit

Review · Visit

Top ICOs

Student Coin

Student Coin

Review · Visit

Token sale

Holdefi

Holdefi

Review · Visit

Press Releases

User-Friendly Interface Is Key to Wisebitcoin’s Steady Growth

April 16, 2021

Sign up and Get Free $30 Coupon With Nhash Cloud Mining Services

April 15, 2021

On CROSS, NFT Loans is supported

April 15, 2021

Newsletter Signup


ABOUT US

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

COMPANY

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

LINKS

Auto Trading Software ▸

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

© 2020 NewsBTC. All Rights Reserved.

  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Trade
  • Invest BTC
  • Join STC ICO

© 2020 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.