The raging fear from investors and soothing economic statistics are forging a strong narrative for a Bitcoin rally.
BTC recorded the best January in a decade after posting gains as high as 40%. The pioneer digital asset broke past the $22,500 price mark on January 20, and is securing its position on this price level. Stablecoins and alts have enjoyed the spoils of the recent market surge as USDT trade volume peaked at new levels. Data shows that over 90% of the stablecoin supply was used in Bitcoin trades this month.
The stock market accompanied this upward price action as China dropped Covid 19 restrictions for the first time in three years of tight controls. The entertainment and e-commerce companies emerged as the best year-to-date market performers. Shopify (SHOP) increased by 42%, Warner Bros (WBD) added 54%, MecardoLibre gained 41%, Paramount Global (PARA) 35% and Carnival Corp (CCL) recorded a 35% profit.
Corporate Interest Remains Strong In The U.S
Meanwhile, a study from financial services firm Matrixport has revealed that 85% of institutional buying activities are from American companies. This indicates their insatiable appetite for crypto assets. The research factors return occurring during the US trading hours and expect altcoins to outperform Bitcoin in the future.
Although the bulls are celebrating a profitable January with about a 50% recovery since November, some investors are yet to recuperate. A closer observation of a wider time frame shows that the bears still have the upper hand, as BTC is still down by 39% on a year-on-year basis.
Do you see this trend in institutional Bitcoin interest growing? Let us know your thoughts in the comment section below.
