The latest wave of growth in the cryptocurrency market is entirely due to retail investors. This is indicated by a study by analysts at The Wall Street Journal, who found that private traders were again drawn to the cryptocurrency market.
Elon Musk’s comments have once again become a bullish catalyst for cryptocurrency. Speaking at “The B Word” conference, the head of Tesla confirmed that his other company, SpaceX, has invested in bitcoin . At the same time, Amazon posted a new vacancy for the position of an expert in digital currencies and blockchain. This news spurred the already flared up excitement.
The volume of spot trading on such kriptobirzhah as Binance, Kraken, Coinbase and Gemini in, too, has grown considerably. Experts believe that retail investors are mainly responsible for it. He Wall Street Journal also writes about this with reference to Coin Metrics.
There are other signs of increased activity in the retail segment. For example, not only bitcoin has grown , but altcoins have also risen in price. Meanwhile, experts note that institutions do not trade alternative coins, this is the lot of private investors looking for cheaper assets with a small market capitalization and great potential.
Santiment data on investor sentiment confirms that moderate optimism has formed in the bitcoin market, which is pushing the cryptocurrency rate up.
😌 #Bitcoin has settled into a $45k to $48k range that has encouraged traders to #FOMO in with anticipation of another run toward the April #AllTimeHigh. Our data indicates optimism is up, but not euphoric in a way that leads to imminent $BTC corrections. https://t.co/G6elk42eSx pic.twitter.com/7ZrIzoZPF5
– Santiment (@santimentfeed) August 16, 2021
Great Migration of Miners
In addition to fundamental events, the movement of miners from China also influenced the dynamics of Bitcoin. The difficulty of mining soared to 15.55 terahashes last week, which indicates an increase in the number of participants in the network. According to BTC.com , mining difficulty started to climb on July 17th. Since then, the figure has increased by almost 14% in two stages.
China’s share in the global bitcoin hashrate dropped from 75% in September 2019 to 46% as of April 2021. This is evidenced by the data of the analytical portal Statista .
The second place in the cryptocurrency mining market is occupied by the States. Their share increased from% in 2019 to 16.85% in 2021. Russia remained at almost the same level (5.9% versus 6.8%), but Kazakhstan has significantly strengthened its position. At the same time, Kazakhstan will allow cryptocurrency companies to open bank accounts.