Institutions are accelerating their “hoarding” of bitcoins, and buying in the global market is on the rise!
On July 12, the President of the European Central Bank, Christine Lagarde, discussed in depth the prospects of the digital euro in an interview. The interview revealed that the European Central Bank Management Committee will agree to enter the “exploratory phase” of the central bank’s digital currency this week.
According to statistics from ZB Research Institute, at least 80 central banks around the world are studying cryptocurrencies. The European Central Bank believes that cryptocurrencies should have the value attribute of cash rather than anonymity. ZB Research believes that the European Central Bank’s cryptocurrency “research” program has lost its first-mover advantage due to excessive “arguments” in its infancy, and the issuance of cryptocurrency in the Eurozone will still take several years.
Based on the research of cryptocurrencies in various countries around the world, the global digital asset trading field is showing an active state. On July 12, it was reported that Lincoln Avenue Capital, a US asset management company, purchased 1,000 Bitcoins (BTC) at a price of 33,525 U.S. dollars. This investment is Lincoln Avenue Capital Asset Management’s first digital asset, and its total investment accounts for 5% of the company’s total assets.
On July 12, according to the statistics of ZB Research Institute, Bitcoin short Bitfinex positions increased by 46.95%, and the current position has reached 12,000 Bitcoins, which is worth about 400 million U.S. dollars at the current price. The current Bitfinex Bitcoin long position accounted for 80.95%, and the short position accounted for 19.05%.
Bitfinex’s increased spot holdings may be the trigger for the increase in market buying. According to another data from the ZB Research Institute, in the second week of July, approximately US$2.2 billion worth of BTC was purchased. The number of users has also begun to slowly increase. According to relevant data compiled by the ZB Research Institute from a survey conducted by Opinium, 45% of young people aged 18–29 in the UK take the cryptocurrency market as their first investment in their lives. Among all digital assets, Bitcoin is by far the most popular among young people, with more than 20% of young people investing in Bitcoin. 56% of participants admitted that they have taken on debt to push them to buy Bitcoin. 23% of waiters use their credit cards to allocate funds among digital assets, while 17% are used for student loans. Another 16% used another type of loan.
The above data shows that the trading potential of the cryptocurrency trading market still exists. The ZB Research Institute believes that the global cryptocurrency trading “stalemate” situation is forming a balance of interests, and the trading red line formed based on the cost of miners always restricts the global cryptocurrency trading volume. The emergence of giant whales and a large number of long-term institutions will increase buying orders in the market, breaking the “stalemate” situation of global cryptocurrency trading. The “hoarding of coins” by the above-mentioned institutions will also have a certain impact on the price of coins.T
