While individual investors take on a desperate mood in the crypto currency market, corporate investors have an optimistic stance. According to Bitwise’s chief investment official (CIO) Matt Hougan, this difference in emotion in the sector is gradually deepening. While the price of Bitcoin decreases, individual investors get despair.
Individual investors are lost and institutions are in purchase
Hougan, Social Media Platform X said in a statement, “Currently in the crypto market, there is a huge disconnection of emotions among individual and institutional investors. While individual investors are experiencing the worst period of recent years, corporate investors are incredibly optimistic ”.
According to Glassnode data that analyzes new user increases in Bitcoin addresses, this metric is low compared to previous years. This shows that individual investor interest is reduced.
Bloomberg ETF analyst James Seyffart thinks that this pessimistic air is caused by great losses in the subcoin market:
Individual investors hold large amounts of subcoin and breast coins in their hands, and these beings experienced great decreases.
Bitcoin is still buying institutions while falling
This week, Bitcoin decreased by 6 %to $ 98,300, while other large crypto currencies suffered harsh losses:
- Ethereum (ETH) lost 18 %and fell to $ 2,716.
- Ripple (XRP) decreased by 20 %to $ 2.46.
However, large institutions are still investing in Bitcoin.
- In 2024, a total of 107 billion dollars of Bitcoin ETFs were invested and ETFs are currently checking 6 %of Bitcoin’s total supply.
- Michael Saylor’s company Microstrategy (currently known as Strategy) has purchased more than 471,000 Bitcoin.
- Blackrock is preparing to launch a new Bitcoin ETF in Europe.
- Donald Trump’s media company has applied for “Bitcoin Plus ETF ..
He loses his strength in Ethereum
Ethereum’s weak price movement is one of the main reasons for the negative weather in the market.
- ETH/BTC ratio has decreased to the lowest level of the last four years.
- Ethereum has difficulty exceeding the $ 4,848 summit, while its competitors increase its market share.
- Some investors even think that XRP can pass Ethereum.
However, corporate investors continue to invest in Ethereum. According to Coings data, there was a large amount of entry into Ethereum on February 4, and regular purchases have been made for the last six days. However, according to Hougan, individual investors and institutions live in two different worlds. It will show how this separation in the crypto market will result in the coming days.
