Bitcoin's correlation with major US asset indices such as the Nasdaq and S&P 500 has reached negative levels for the first time since January 2021, market analysis firm K33 Research said.
The report "BTC strength concentrated to US hours”, presented by K33 Research on June 29, notes the institutional interest which has sparked Bitcoin in the United States as the main driver of the cryptocurrency's price in the past week.
According to the firm, the price of BTC saw staggered gains last week, mainly during the US market's trading hours. The fluctuations in the price of Bitcoin decreased during the closing hours of the same market, the firm indicated.
“US market hours are now the strongest market hours for BTC since the November low”, K33 Research said.
Data suggests that institutional activity led by BlackRock in the Bitcoin market is behind the cryptocurrency's current strength, which remains trading above $30.000 per unit.
The interest of the largest financial institutions in the United States and the world in Bitcoin has also renewed optimism in investors and in the crypto community in general. At the time of writing this article, More than $13.000 billion worth of Bitcoin has been traded in the last few hours. This daily Bitcoin trading volume has also been highly concentrated during active US market hours, K33 Research noted.
“50% of Bitcoin’s weekly trading volume occurred during the US trading session”, the company noted.
Bitcoin has grown 35% this 2023
Bitcoin has been recovering from a challenging and scandalous 2022, which was plagued by the bankruptcies of crypto companies such as the FTX exchange and the Three Arrows Capital fund, among others, and the implosion of the Terra/LUNA blockchain ecosystem. However, Neither the crypto winter nor the growing regulatory scrutiny have managed to keep away the heavyweights of the financial world, who are increasing their interest in Bitcoin as the cryptocurrency trades 55% below its all-time high price, recorded in November 2021.
Source: CoinMarketCap
Companies such as BlackRock, Valkyrie Investments, Invesco and WisdomTree are seeking approval from the Securities and Exchange Commission to create the first Bitcoin spot ETF in the United States. This search is being joined by Fidelity Investments, which recently confirmed its plans to file a new Bitcoin spot ETF application with the SEC.
Likewise, ARK Invest, the asset management company founded by Cathie Wood, which has over $50.000 billion in assets under management, is following BlackRock’s Bitcoin spot ETF filing to introduce the “shared surveillance” strategy designed by the financial giant to increase transparency and mitigate the risk of manipulation in the BTC market. According to the Chicago Board Options Exchange, the modified registration application that ARK Invest filed with the SEC includes such a strategy.
Institutional investment in Bitcoin is growing
Institutional interest in Bitcoin extends beyond regulatory filings for the creation of cryptocurrency exchange-traded funds.
In the case of MicroStrategy, the American business intelligence company of Michael Saylor, announced on June 28 the Acquisition of 12.333 new bitcoins, with a cash investment of $347 million. With this, MicroStrategy holds a total of 152.333 bitcoins, valued at more than $4.600 billion, on its corporate balance sheet.
Experts conclude that the growing institutional interest that Bitcoin is generating could mean a tipping point for cryptocurrency adoption and for the crypto industry in general.
Continue reading: The United States has more than $5.000 billion in Bitcoin, says Morgan Creek Capital partner
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