Institutional Investors Are Coming Back To The Bitcoin And Crypto Markets After The FTX Crash
Market sentiment in the United States around the crypto market is recovering, said the founder of crypto analytics portal CryptoQuant, based on the Coinbase Premium Index. For the first time since the collapse of major crypto exchange FTX, the index climbed into the green zone.
As previously reported by U.Today, the Coinbase Premium Index helps the community gauge the sentiment of large investors working on the trading platform for professionals from the exchange of the same name. This also includes institutional investors, of whom Coinbase has a majority, according to this year’s Q3 report.
The index is rising because of increased trading volume on the exchange, indicating a return of buying power and the start of the accumulation of positions in Bitcoin by these big players.
Is a Bitcoin Rally on the Table?
The return of this crypto market weather vane to positive values is another confirmation of the optimistic sentiment. It wasn’t until two days ago that an even bigger accumulation of bitcoin came to light, with around 50,000 BTC bought by various investors over a five-day period in late November. Even before that, the number of wallets holding between 0.1 and 10 BTC reached a historic high.
The trend is clear and understandable. While fear ruled the crypto market, smart money got their bags out, caught the right moment and started buying.
