It was institutional buyers that pumped the bitcoin price by 23 percent last week, according to a prominent cryptocurrency analyst.
Alex Krüger said the latest bitcoin price action hinted systematic buying, an act of people pooling their strategy to purchase a financial asset in large volumes. Retail investors lacked the capital that could pump the bitcoin market capitalization by approx $32 billion in a week. So, it was very likely that a “handful of large players” initiated a coordinated pump, and bitcoin’s valuation rose wildly.
“Clues to reach that conclusion can be found in the volume, price action, funding, and futures basis and term structure,” explained Krüger. “[It was] not retail driven.”