Analysis platform, Whalemap has attributed the recent Bitcoin bullish run to a phenomenon known as Fear Of Missing Out on the part of large scale institutional investors.
According to a recent report submitted by the platform analysts, Institutional investors started joining the Bitcoin bandwagon when the price was around the $12,000 to $15,000 region. The fear of missing out is a phenomenon where traders are forced to invest in an asset when the price begins to show bullish jumps.
Whalemap noted that the recent trend is healthy and very good for digital assets because investors hodl their assets for a long time.
Institutional demand has pushed out the majority of retail investors
In recent weeks, Bitcoin has experienced a suppressed level of interest by the public, owing to the influx of institutional investors into the market. Institutional investors are currently on a holding spree, which has pushed out most retail investors from the Bitcoin market.
Presently, Bitcoin has seen a very demand on the mainstream judging by a report from Google Trends. However, this is surprising considering the massive price increase that the leading digital asset has witnessed in the last few weeks. According to analysts, it is the institutional FOMO that is pushing most of them into the market. With Bitcoin growing in leaps and bounds, Institutional investors are scared that they won’t seize this opportunity to earn profit for themselves, hence the large-scale buying up of the leading digital asset.
According to a post on Twitter, analysts of Whelemap noted that they were beginning to experience whale clusters as they started to form after new Bitcoins were moved into previously owned whale wallets. In its summary, Whitemap noted that the cluster explains that one of the largest FOMO is present in the Bitcoin market, but it is on an institutional level.
Analysts list out two factors responsible for institutional accumulation
Whale clusters is a term that describes a scenario where wallets that belong to whales that olds nothing less than 10,000 bitcoin starts to experience more deposits without moving the previous funds. The whale clusters mean that the institutional investors have no plans to move their holdings in the nearest future.
Whales accumulating Bitcoin proves that the time is right for Bitcoin to experience more mainstream adoption. Analysts have further noted that two factors are responsible for the massive accumulation of Bitcoin by whales in the market.
The first of the two factors is the spot market surging ahead of the derivatives market instead of the previous trend of the derivatives leading. This development shows that Bitcoin’s funding rate on an average level is slightly above 0.01% even though the price is on the rise.
The second factor is the drastic reduction in short contract liquidation around when the lastest rally took place. In the previous rally before this present one, Bitcoin has always experienced a surged in the rise of short contracts, with most of them totaling above $100 million.