JPMorgan: Retail Buyers Provide Most of Bitcoin Demand

In the first quarter of 2021, US retail investors bought more bitcoins than institutional investors. Such data are provided by JPMorgan analysts, Bloomberg reports .

In the first three months of the year, individual buyers purchased over 187,400 BTC. During this period, institutions bought about 172,700 BTC.

Source: Bloomberg.

In the fourth quarter of 2020, institutional investors accounted for 306 658 purchased bitcoins, and retail investors accounted for 205 444 BTC. In the previous period, the latter bought more digital gold than institutions.

Analysts at JPMorgan used information from Square and PayPal, as well as data on bitcoin futures on the CME, investment fund reports and company announcements. The statistics are far from perfect, but indicate that investment flows in bitcoin have become more balanced, the newspaper noted.

According to experts, the activity of retail buyers is fueled by the boom in NFT and new stimulus payments in the United States. The chill in trading community-promoted stocks on Reddit also played a role, they say.

“The volatility of meme stock trading has hit many, but Bitcoin has maintained a strikingly bullish trend that has made the majority winners. Retail traders have stepped up with the NFT boom and as the incentives poured into their bank accounts, ”said Ed Moya, senior market analyst at Oanda.

Brian Wendiga, president of MJP Wealth Advisors, believes that the arrival of large companies in the industry in 2020, which ensured Bitcoin’s growth, has drawn additional attention of retail investors to the asset.

“When you see something take off, it creates an impulse in which you want to participate and the balance tilts towards greed and fear of missing out,” the expert is sure.

We will remind, on Saturday, March 13, the price of bitcoin updated its historical maximum at levels above $ 61,000, but then the quotes were adjusted.

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