Bitcoin, best January since 2013 ── American institutional investors lead | coindesk JAPAN | Coindesk Japan

Bitcoin (BTC) has had its strongest start since 2013. The price of Bitcoin, the world’s largest cryptocurrency by market capitalization, has surged 40% this month on the back of a weak US dollar. Observers said the rise was largely driven by domestic buyers.

• “Bitcoin is up 40% year-to-date, 35% of which occurred during US trading hours. US investors contributed 85% of the rise,” said a crypto service provider. , said Markus Thielen, head of research and strategy at Matrixport, in a note to clients on Friday.

A graph that breaks down Bitcoin returns into trading hours by region. (Matrixport Technologies)

• “We interpret this as a clear signal that US institutional investors are buying Bitcoin,” Thielen added.
• Bitcoin surged 51% in January 2013.
• Unlike stocks, bitcoin and cryptocurrencies in general trade around the clock, allowing observers to track order flow across different timeframes and deduce the sources of buying and selling pressure.
• Institutional bullishness is also evident in rising premiums for Bitcoin futures on the Chicago Mercantile Exchange.
• “Not only are institutional investors buying bitcoin spot, perpetual futures also always carry a high premium. We interpret that as an indication of buying,” Thielen said.
• Deutsche Digital Assets issued a similar view earlier this month, noting the rise in the Coinbase premium index as evidence of increased buying interest among sophisticated American institutional investors relative to individual investors.
• “Traditional, crypto-focused hedge funds and corporates and traditional asset managers are buying,” said David Guong, head of research at Coinbase Institutional. David Guong) wrote in his weekly Market Commentary released on Jan. 20.
• Bitcoin’s institutional-led bullish turn may bode well for the US stock market, given the crypto’s historical record of bottoming weeks ahead of the S&P 500.

｜Translation: coindesk JAPAN
｜Editing: Toshihiko Inoue
｜Image: Matrixport Technologies
｜Original: Bitcoin on Track for Best January Since 2013, Led by Bullish Trading in US Hours