There’s a specific crypto sector that can foreshadow the Bitcoin rally, according to the latest reports. Check out the available details below.
A crypto sector can foreshadow the Bitcoin rally
According to the latest reports, the analytics platform Santiment is revealing where deep-pocketed Bitcoin (BTC) investors have been putting their money following the crypto sell-off.
Santiment made sure to highlight the fact that crypto whales could have invested in government debt in the US and other countries as a result of interest rate increases by the Federal Reserve and a gloomy economic outlook.
“One thing that was giving traders hope was the fact that large stablecoin market caps were growing through May of this year.”
The same notes revealed the following:
“But when Federal Open Market Committee (FOMC) interest rate hikes and recession scares began to really take hold of investors’ speculative decisions, it became much harder for large holders to justify keeping such a large amount of dollar-pegged crypto on the sidelines.”
The very same notes said:
“The very likely implication is that these large institutions and whales are holding their money in US and world treasuries instead. Crypto is simply too unappealing to them (for now) with so much uncertainty that has been going on throughout 2022.”
Fidelity highlights crypto adoption boom
It’s been revealed that there is a new survey from financial services giant Fidelity shows that a majority of institutional investors have already invested in crypto assets.
In a report from Fidelity Digital Assets, a crypto arm of the firm, president Tom Jessop made sure to explain the fact that the industry is in a phase of “institutionalization” as it emerges from a bear market cycle.
“The increased adoption reflected in the data speaks to a strong first half of the year for the digital assets industry. While the markets have faced many headwinds in recent months, we believe that digital assets.”