Has the enthusiasm of retail investors returned to the bitcoin market and other cryptocurrencies?
The answer is very clear "Yes", This new boom began at the beginning of May, when the price was approximately half of the current one. The past month of June was the fifth consecutive month in which Bitcoin showed positive returns. It is the longest streak in almost two years. Not only this, but also the search for "bitcoin" in Google.
Return of retail investors
There are signs that institutions are becoming more comfortable with the cryptocurrency market. Above all, due to the comparison of its broad growth potential in contrast to the conventional market. Despite this, it is a market that is still driven by retail investors.
The recent parabolic price movement has given us a strange flashback of 2017, although the feeling is not nearly as dramatic. The search for "bitcoin" in google is widely used to monitor the general interest of the public in cryptocurrency. The increase in the premium in GBTC (GRAYSCALE BITCOIN TRUST BTC, It's real time information about Bitcoin shares), it's a sign that retail investors are returning to the digital asset market.
At the same time, the GBTC premium has increased since the sale in the fourth quarter of 2018. This indicates that the enthusiasm of retail investors has returned, at least in part, after the brutal decline in prices last year. . Interestingly, GBTC's institutional demand is growing. Almost 75% of investments in GBTC in the first quarter of 2019 come from institutional investments.
July has historically been a positive month for bitcoin. Within its limited history, bitcoin tends to perform well in July, approaching double-digit monthly earnings (+ 10%). With positive returns in all years, less in 2014.
In terms of arguments behind the latest rise in the price of bitcoin, it has mainly been pointed to Facebook's cryptocurrency, Libra. This, despite the fact that both cryptocurrencies do not have much to do with each other. That said, many of the individuals who showed up on stage during the last Bitcoin 2019 conference, pointed out the possibility that Libra could be an educational experience for the masses and direct certain profits for bitcoin. Added this we just have to wait a few good numbers in green for the future of bitcoin and all those investors.
