Search ForexCrunch
  • Hedge fund buyers are becoming notable in the purchase of large sums of cryptocurrencies.
  • “We’ve seen triple-digit growth enrolling in our OTC business,” reckons Jeremy Allaire.
  • Private sales are attractive to the private buyers and sellers alike.

Many cryptocurrency experts and analysts say that the entrance of institutional investors will trigger the much-awaited bull rally in the course of 4Q. However, a report recently published by Bloomberg shows that the big investors are already involved in the $216 billion digital asset market.

Hedge fund buyers are becoming notable in the purchase of large sums of cryptocurrencies. According to Bobby Cho, the head of trading at Cumberland; a crypto trading unity under DRW Holdings which is based in Chicago, over $100,000 in private transactions gone towards the purchase of digital assets.

Every keen follower of the cryptocurrency market performance has heard the phrase, “wait until institutional investors embrace cryptocurrencies’ repeatedly over the last one year. This couple with regulatory acceptance has been used as a bait to appease those who are somewhat skeptical of the market impending uptrend.

In the meantime, the largest cryptocurrency miners in the industry are have found a way that allows them to dispose of the coins they earn after solving complex mathematical equations used in conforming transactions. The miners are currently organizing their own coin sales as opposed to storing the coins while waiting for a market rally. Moreover, some of these miners have established their own operated liquidity desks and other related operations.

“What that’s showing you is the professionalization that’s happening across the board in this space. The Wild West days of crypto are really turning the corner,” explains Bobby Cho.

Over-the-counter (OTC) market is said to have recorded growth in the recent past. In fact, this market facilitated between $250 million and $30 billion of the total trades recorded in April this year. These figures are backed by researchers from Digital Assets Research as well as TABB Group.

“We’ve seen triple-digit growth enrolling in our OTC business,” reckons Jeremy Allaire, the CEO of Boston-based Circle Internet Financial. “That’s a big growth area.”

However, when the OTC market is compared to the all-time high, it has gone down considerably in the same way as the crypto prices and the trading volumes through exchanges. Institutional investors have had a test of the crypto market following the stability in the market in the recent month. Cryptocurrency wild swings have gone down considerably according to Bobby Cho.

“One of the biggest criticisms of crypto by institutional investors has been the volatility, over the last four to six months, the market has been trading in a very tight range, and that seems to be corresponding with traditional financial institutions becoming more comfortable diving into space,” Cho continues.

Private sales are attractive to the private buyers and sellers alike due to the fact that the agreed upon price remains fixed. Exchange transactions continuously alter the prices and this puts the large buyers and sellers at bay.

Bitcoin price technical picture

Bitcoin plunged below the short-term support at $6,500 but the buyers have been able to defend the nest support at $6,400. The price is trading at $6,457 following a recovery from the triangle and bullish channel support (both explored in an earlier price analysis). The 50 SMA currently is currently offering resistance while the 100SMA will hinder movement to $6,500. Applied technical indicators show that the trend is bullish but lacking the power for huge upward swings. BTC/USD has been relatively stable in the past couple of weeks maintaining the bullish channel.

BTC/USD 15′ chart