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Almost all $100k and larger transactions are made by institutional players

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As per data from IntoTheBlock, institutional investment accounts for the vast majority of bitcoin transactions exceeding $100,000.

According to the IntoTheBlock report, institutional interest in cryptocurrencies has increased since late 2020. The percentage of institutional transaction volume never falls below 90%.

Paypal and Tesla have been dipping their toes into the bitcoin pool from mid-2020, leading in highs throughout 2021. Bitcoin has been added to the balance sheets of both Tesla and MicroStrategy. The former purchased BTC as a strategic main reserve asset.

According to the report, miners are now playing a smaller role in the ecosystem. Their holdings of BTC have approached a ten-year decline.

Bitcoin defying the former tendency

The bitcoin hash rate represents the collective power used to mine new bitcoins. It has reached high levels, putting pressure on miners’ earnings. It is also prompting many to sell part of their holdings.

According to the paper, Bitcoin’s highs have traditionally coincided with institutional investment peaks. Bitcoin has recently performed similarly to stocks, defying the former tendency.

The stock market is now being impacted by rising inflation in the United States. Although, it has been intensified by the Russia-Ukraine crisis too.

The gap between institutional investors and ongoing bitcoin prices is swinging. Additional key on-chain data indicates that the number of Bitcoin wallets with a non-zero balance has surpassed 40 million. On the other hand, positive Ether addresses have surpassed 70 million.

Following a price decline at the start of 2022, bitcoin outperformed the five biggest technology stocks on February 13. It had an average yield of 12.24%.

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BTC is a good tool for institutions that regard crypto assets as part of a diversified portfolio of other assets, given many economies have close to zero interest rates.

Bain Capital invested $560 million for crypto financing. Pantera Capital invested $1 billion, bringing the total number of high-profile corporations on board with bitcoin to nine.

Hedge companies on Wall Street are pouring billions into cryptocurrency. Sequoia Capital is creating a $500 million to $600 million crypto project.

Bitcoin lacking support to maintain its path

In recent weeks and months, the Bitcoin collection has been steadily growing. People, on the other hand, looked at Bitcoin on-chain accumulation trends in relation to the BTC price level. They found a distinction between people who had less than 1 bitcoin and those who have 1,000 to 10,000 bitcoins.

Since October 2020, the number of smaller investors has continued to rise substantially as whales disperse their holdings.

With such a disparity, the site has highlighted that the whales may not retain the main digital asset. It is uncertain if there would be enough fuel for it to maintain its upward path.

Your capital is at risk.

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