Binance Research Releases Report Showing Non-Crypto Users and Investors Are Currently Entering The Market
- Investors from other industries are placing their funds in the crypto market
- Binance Research shows that the market has already bottomed
Cryptocurrencies have been expanding during the last few years. The last two months in the crypto market were also very positive for digital currencies that expanded to their highest point in more than 8 months. Bitcoin has also attracted new investors and indeed, a new report released by Binance Research shows that non-crypto public is entering the space.
Report Shows New Investors Enter The Crypto Market
The first thing that is worth mentioning is related to the record high that the Chicago Mercantile Exchange (CME) registered during May. 33,700 contracts were registered on May 13, 50 percent higher than the previous record of 22,500.
Moreover, institutional demand is also growing in the space. According to Binance Research, institutions represent less than 10% of all long-term investors, but they are growing their exposure to the most popular digital asset and other virtual currencies. This can be seen with the 40% premium that investors are paying for Grayscale Bitcoin Trust (GBTC).
At the same time, Binance informs that interest in Bitcoin Over-the-Counter (OTC) trading is also increasing. The report shows that in May, the OTC market saw the participation of new investors that were not related to the cryptocurrency space.
In addition to it, the report says that the prospects for the crypto industry could be even better if projects in that are currently creating their services materialize and start providing blockchain-based business solutions to daily users.
On the matter, the report reads as follows:
“Thanks to their large user-bases comprised of both retail and institutional clients, these initiatives could ultimately benefit the whole crypto asset industry, with new users moving onto decentralized, permissionless and non-custodial platforms.”
The research has also analyzed changes in crypto asset correlations that were based on market structure and that showed that USD returns for the top 30 crypto assets by market cap were highly correlated over the past three months.
As per the report, after a period of high internal correlations in virtual currencies, the data shows that the crypto market may have already bottomed out. Indeed, Bitcoin has already surged 185% since its bottom in December 2018, which shows that the market is in a very positive trend. Other digital assets such as Litecoin (LTC) or Binance Coin (BNB) have also experienced large gains since they bottomed 5 months ago.
According to CoinMarketCap, Bitcoin is being traded around $8,541 and it has a market capitalization of $151 billion.