Metrics on recent money flows indicate veteran crypto traders are fueling Bitcoin’s current boom.
Data from the crypto price tracker Coinlib shows Tether’s USDT stablecoin is responsible for the largest percentage of Bitcoin buys on crypto exchanges, with $6.99 billion exchanging hands between the two cryptocurrencies in the past 24 hours.
Ethereum is second-most used currency in Bitcoin trading, with $2.45 billion moving between the two. Only then is the US dollar on the list, with $1.99 billion exchanged between it and Bitcoin.
Mati Greenspan, a senior market analyst at eToro, points to Coinlib’s charts as evidence of veteran trader involvement in the surge.
“All data that we have indicates that the current #bitcoin rally is being driven by #Cryptotraders who are already familiar with the market…
Question is, will the newbies pick up the baton and blow us past the ATH?”
The role that institutions are having on the market is harder to track, as they often buy assets in private, over-the-counter (OTC) trades. However, crypto asset managers like Grayscale say investments in cryptocurrency are rising sharply. The company reported a 2,300% surge in hedge fund investments in the first quarter of 2019.