Cryptocurrencies exceed the returns of major tech stocks

Data from IntoTheBlock shows that institutional investment accounts account for the overwhelming majority of all bitcoin transaction volumes above $100,000.

The “IntoTheBlock” report reveals that institutional interest in cryptocurrency has accelerated since the third quarter of 2020, and since then the share of institutional transaction volume has not fallen below 90%.

Since the third quarter of 2020, companies like PayPal and Tesla have dipped their toes into the sea of ​​bitcoin, driving ups throughout 2021.

Both Tesla and Microstrategy have added billions of dollars worth of bitcoin to their balance sheets, with bitcoin buying and positioning as a strategic reserve asset.

The report also notes that miners are now playing a smaller role in the bitcoin ecosystem, with the amount of bitcoin they own at a 10-year low, while the bitcoin hash rate (the collective force used to mine new bitcoins) has reached high levels, both of which put pressure on The profitability of miners, prompting many to sell part of their holdings.

Bitcoin behaves similarly to the stock markets:
The report says that although Bitcoin has historically recorded highs to coincide with the peaks of institutional investment, it has recently behaved similarly to stocks, bucking the previous trend.

The stock market is currently experiencing the impact of high inflation in the United States, which was accelerated by the conflict between Russia and Ukraine.

Despite the disconnect between institutional investing and recent bitcoin price movements, other important data on the network indicates that the number of bitcoin wallets with a non-zero balance has reached 40 million, while addresses with an ethereum balance crossed the 70 million mark.

Cryptocurrencies exceed the returns of major tech stocks:
Although the price of Bitcoin fell at the beginning of 2022, the performance of the six largest technology stocks exceeded the average return of 12.24% on February 13, 2022.

Many economies have had interest rates close to zero, making bitcoin an ideal tool for institutions, which deal with crypto assets as part of a diversified portfolio of other assets.

Bain Capital raised $560 million for a crypto-directed investment fund, and Pantera Capital raised $1 billion, adding it to the list of notable companies that have jumped on the bitcoin bandwagon.

Wall Street hedge funds are pumping billions into cryptocurrency.

Recently, Sequoia launched a crypto fund that holds between $500-600 million.

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