New data has highlighted the significant role of institutional investors in Bitcoin transactions as the asset continues to experience wild price swings.
Currently, institutions account for over 99% of all Bitcoin volume emanating from transactions valued at over $100,000, data provided by IntoTheBlock indicates.
The report notes that institutional interest in crypto accelerated from the third quarter of 2020, where the share for large transactions has never dropped below 90%.
Notably, PayPal (NASDAQ: PYPL) and Tesla (NASDAQ: TSLA) entered the Bitcoin market in 2020 Q3, resulting in many all-time highs in 2021. Companies like MicroStrategy and Tesla, on the other hand, are leading the way in putting billions of dollars of their own money into Bitcoin.
Institutional interest in Bitcoin has historically pushed the price up, but the report acknowledges that this is not the case right now. Bitcoin has seen a lot of volatility as the crypto market becomes more and more correlated with the stock market.
The stock market is currently feeling the effects of excessive inflation, which has been exacerbated by geopolitical tensions following Russia's invasion of Ukraine.
Notably, several factors are behind Bitcoin’s appeal to institutions with the potential of an upside growth ranking top.
According to Finbold’s previous report, despite Bitcoin opening the year on a negative note, the asset had outperformed the top six tech stocks by an average return on investment (ROI) of 12.24% as of February 13, 2022.
Additionally, most economies have had a near-zero interest rate environment in recent months, leaving Bitcoin and other cryptocurrencies as an ideal alternative for institutions.
So far, in 2022, some of the big profile companies to venture into crypto include Bain Capital, which raised $560 for a crypto fund, Pantera Capital which raised $1 billion for a crypto fund.
