The current Bitcoin bullish market is led by institutional investors, transitioning from individuals to whales = Matrixport

## Are corporate Bitcoin Holdings driving the market?

The cryptocurrency service company Matrixport announced the latest analysis of the Bitcoin (BTC) market on the 23rd. It points out that the current rise in Bitcoin is led by institutional investors rather than individual investors.

In past bull markets, it is believed that individual investors took the lead, and the excitement on social media and FOMO (fear of missing out) prompted rapid price increases.

On the other hand, it was stated that there is a tendency for large institutional investors, such as companies adopting a Bitcoin financial strategy, to lead the market.

Matrixport pointed out that the funding rate in the Bitcoin futures market is stable and there are no extreme buying or selling activities.

Furthermore, the trading volume is minimal, and altcoins are lagging behind. This suggests that individual investors are inactive.

Furthermore, unlike the previous bull market, individual investors' Bitcoin Holdings have not increased in the current cycle. Although it is generally believed that Bitcoin is still in the early stages of adoption, it has been pointed out that a small number of whales (large holders) are absorbing the available supply.

Matrixport expressed that as the transition from individual investors to institutional investors accelerates, it becomes important to understand the situation regarding corporate demand for Bitcoin and how long such trends may continue.

Specifically, the analysis of on-chain data and wallet activity is essential for estimating the price levels at which large Holdings are likely to activate transactions. Matrixport has expressed the following views.

We are now witnessing a shift in demand for Bitcoin, quietly and steadily moving from early investors, miners, and exchanges to a new class of investors, particularly led by companies like Strategy.

The current bull market is driven more by accumulation in the spot market than by speculative derivative trading, and it has been suggested that long-term Holdings are behind this.

On the 22nd, Glassnode also pointed out that the profits taken by long-term holders of Bitcoin have significantly decreased compared to the past. They analyzed that the speculative elements are decreasing, and there may be continued bullish expectations from investors.

As Matrixport points out, as of May, 85 publicly traded companies and institutional investors around the world held a total of more than 800,000 BTC in Bitcoin. It has reached about 4% of the total supply. Approximately 2.7% of the total is accounted for by U.S.-based Strategy.

Reasons for companies adopting Bitcoin as a financial strategy include preparation against inflation and the decline in the value of fiat currency, as well as portfolio diversification.

In Japan, Metaplanet and Remixpoint have adopted such strategies, and both companies are significantly growing their stock prices.

Related: How to buy Bitcoin | Investment benefits, risks, and choosing the optimal exchange that beginners should know.