20.04.2024

Who buys the most bitcoins: the answer from the largest US investment bank

According to a study by analysts of the largest US investment bank JPMorgan Chase, the main buyers of Bitcoin are now not large organizations, but individual investors and traders.

This quarter alone, they purchased at least 187,000 BTC using PayPal and Square. During the same period, large institutional players have accumulated only 173 thousand BTC . As the basis of their research, analysts took information about large outflows of coins from different platforms, the volumes of futures trading on CME and purchases of large funds.

Note that Bitcoin looks great today. Last night, the cryptocurrency showed a sharp rise from the level of 55 thousand dollars to 58 thousand. Now they offer $ 59,022 for BTC, which is 4.8 percent higher than a day ago.

Bitcoin price chart per day

bitcoin chart rate

BTC’s all-time high of $ 61,711 is not far away.

Who Buys Bitcoins?

Ed Moya, chief analyst at Oanda Corp., is confident that the current hype around the NFT sector and the payment of «free money» as part of the new stimulus program from the US government contributes to the high activity of individual market players. Here is his line, in which he shares his attitude to what is happening. The quote is from Cointelegraph.

Now, as the hype declines, fueled by the stock exchange craze of Reddit traders and NFT-like innovations, retail players – some of them now armed with $ 1,400 checks – are taking over the marketplace.

As a reminder, NFT tokens are one of the most popular trends this year. They allow you to tokenize items from the real world – or digitally – and prove your ownership of them on the blockchain. So far, the key advantages of the blockchain have been particularly actively appreciated by representatives of the art industry, since the blockchain is excellent at fighting counterfeiting.

By «insanity,» Moya meant the skyrocketing shares of GameStop, which happened thanks to the activity of the WallStreetBets community on Reddit. It is likely that now many traders from this «crowd» have finally turned their attention to the crypto market. Now they have at least 1,400 free dollars for investments, which can also be spent on Bitcoin. In addition, many people, even outside the crypto industry, have heard about the sharp rise in BTC in recent months, so now they are simply afraid of missing out on potential profits.

But who are definitely in the black are the Bitcoin miners. Mining the main cryptocurrency has never been so profitable. On the eve of this week, daily mining profitability of BTC soared to the equivalent of $ 58.72 million .

bitcoin mining

Bitcoin miners profitability

Experts from the analytical platform Glassnode noted that the growth in the profitability of Bitcoin mining is a positive indicator of the healthy development of the cryptocurrency, Decrypt reports. Still, miners provide network security and, accordingly, reliable protection for all users’ coins. And since the financial component of motivation for them is at its peak, it means that in the future the first cryptocurrency is definitely not in danger.

We checked the latest data: it is really very unprofitable to attack the Bitcoin network. To carry out a 51 percent attack, users need computing hardware that would cost $ 716,000 to rent per hour. And since there is no such capacity in the public domain for online rental, there is no reason to hope for such a scenario. In the case of BTC, any such attack attempt will end only with a loss of money for the attacker.

cryptocurrencies attack 51 prices

The cost of carrying out a 51 percent attack on various cryptocurrencies within an hour

The BTC mining business is very attractive, and now even more players will strive to join a new industry for themselves. In addition, old miners will also remain in the game, as their hardware generates excellent income. All these factors together provide reliable protection for the Bitcoin network.

So far, everything points to the continuation of the growth race of the cryptocurrency market. And although the volume of purchases by ordinary investors seems to have bypassed the indicators of professionals, two points should be noted here. Firstly, the number of retail or «home» investors will be much larger, since almost anyone can join investing in Bitcoin and other coins. Moreover, the more actively the BTC rate begins to grow, the more of them there will be.

Secondly, analysts cannot take into account the so-called OTC deals, which are carried out by large players outside the exchange. This means that it is possible that many companies also buy cryptocurrency, but do not voice it. In any case, the growing interest in coins is encouraging. It indicates market prospects and readiness for further development.

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