By
Tolu Ajiboye
April 23rd, 2024
In the last quarter, recent data reveals there has been a record $20 billion inflow into Bitcoin. Furthermore, retail traders have bought more Bitcoin than institutions according to the report by JPMorgan Chase.
US investment bank JPMorgan Chase has shared its research findings that reveal retail traders have bought more Bitcoin than institutions in the last quarter. The investment bank followed data on retail purchases from mainstream fintech firms such as Square and PayPal. This compared fund flows from retail platforms to institutional vehicles as well as institutional announcements of Bitcoin purchases.
By the bank’s estimate, retailers bought more than 187,000 BTC. In contrast, institutions bought 173,000 BTC. According to those commenting on the findings, they attribute the high retail interest to social media activity as well as the NFT frenzy. Social media has also especially played a big part. Bitcoin has been a major discussion over the last couple of months on social media and mainstream media as it set new all-time highs. Most retail traders have through the period sough Bitcoin due to FOMO (Fear of Missing Out).
This report has been an indication that despite the recent interest in Bitcoin by institutions it remains largely held by retailers. Credit for starting bull cycles and bringing confidence that Bitcoin is a safe asset goes to institutions but retail traders buying pressure has been the main force for Bitcoin to reach new highs.
According to Ed Moya, Senior market analyst at Oanda Corp, demand for Bitcoin among retailers could go even higher with the distribution of stimulus checks. He told Bloomberg:
“Now, with the Reddit-fueled meme stock craze cooling and novelties such as digital artwork setting records, retail traders – some now armed with $1,400 stimulus checks – are taking control.”
Retail Traders Stimulus Checks Plans
His sentiments were last week verified by a recent poll conducted by Mizuho Securities revealed that 2 in every 5 Americans plan to invest their $1,400 checks in Bitcoin or the stock market. Furthermore, of those investing their checks, 60% preferred Bitcoin to the stock market. This is a major boost for prices. It will also see retailers get a better hold of the market share.
With interest set to go even higher, most expect a price explosion. In the last 3 months, Bitcoin has doubled to reach a high of $60K. Can the asset double again over the next three months or even sooner? Market analysis by CaseBitcoin has given a rundown of the current trend and past patterns on Twitter.
3/ How low can it get? In 2017, the fastest doubling pace – 12 days – happened on December 7th, nine days before the 3yr peak: pic.twitter.com/CgyIjDBJwU
— CaseBitcoin (@case4bitcoin) March 16, 2021
The analyst noted that starting January 22, Bitcoin doubled from $21K to $42K in just 22 days. Now, exchange supply is at record lows and volatility has crept back over the last few days. The next explosion and possible doubling from $50K to $100K could be days away.