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Home / Business / Binance Research Report Claims that are less than 7% of cryptos are owned by institutions

Binance Research Report Claims that are less than 7% of cryptos are owned by institutions



It has long been a belief among cryptocurrency investors that the entry into institutional capital of the nascent crypto markets would be the event that triggers the next beef market, as the institutions have access to investment capital that far exceeds that of a cumulative group of individual investors.

A recent report by the Binance Research Market Analysis Arm to the world's most popular Crypto Exchange Exchange, Binance, explained that an estimated 7% of all cryptographic rates are already owned by institutional investors, indicating that the cryptic markets have a

Crypto Markets Still dominated by Retail Investors [19659004] An important part of the information contained in the comprehensive report is about how involved institutional investors are already in the crypto markets. [1
9659002] The report explains that the large amount of retail investors currently dominating the markets can be a factor that leads to a high degree of correlation between different digital assets, as institutions can account for as little as 7% of the entire market when taking into account both Bitcoin and various altcoins.

"From data collected by cryptofundresearch.com, around 700 crypto funds operate … today, representing a total of just $ 10 billion in assets … With a conservative assumption that they all hold exclusively Bitcoin, this will constitute an upper limit of only 14% of the total market value of Bitcoin; if Altcoins is included in the assumption of their holdings, the total "institutional share" may be less than 7% for the crypto cartridge market, "the report says.

Comparing this engagement with the traditional stock market, Binance Research explains that the institutional participation rate "represents only a thirteenth of that for the US stock market."

When considering the fact that the institutions currently account for a small portion of the aggregate markets, it is clear that there is still considerable amount of capital sitting on the sidelines just waiting to be invested.

Cryptocurrency Markets May Have Already Found a Bottom

Apart from a lot of data on the enormous potential that crypto markets still need to achieve higher institutional investment rates, Binance Research Report also shows that there is a high probability that the crypto market has already established a long-term stay

The report notes that the last period of high correlation between Bitcoin and the aggregated altercoin markets lasted for 90 days until March 14, marking the longest period of "peak correlation" in the crypto story.

For what this means for the markets, Binance Research says that the market sentiment probably found a local maximum during this period, which means that a "trend reversal can … follow."

"Having arrived from a period of highest internal correlations in crypto history, the data can support the notion that the crypto sheet has already bound," they explained.

The latest statistics and data shared by Binance Research should be overwhelmingly positive for emblemed crypto investors, as it shows that markets are still in the early stages of widespread adoption and have already established a bottom that will eventually lead for a trend change.

  Featured image from Shutterstock. [19659016]

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