Bitcoin market trend report Q3/2019

Bitcoin had a strong quarter for the most part, but the growth turned negative during the last week of the quarter. Bitcoin dominance grew from 62% to nearly 70% so bitcoin had better quarter than most cryptocurrencies. Bitcoin dominance was shortly over 70% for the first time after 2017.

Institutional demand for bitcoin keeps growing

Grayscale LLC, among others, reported escalating institutional demand during third quarter of 2019. According to Grayscale’s data, institutions accounted for 84 percent of their total inflows during Q3.

The institutional growth in third quarter is part of a longer trend which only gained more momentum during last three months. The institutional clients forGrayscale are reportedly mostly US hedge funds.

investor-profile
Most of Grayscales bitcoin investing clients are now institutional investors. Many companies have reported growth in the number of institutional bitcoin investors.

Information asymmetry within cryptocurrency markets

The threshold for entering bitcoin & cryptocurrency markets is high combined with barriers of entry. Industry contains silent knowledge which can mostly be acquired by empirical experience.

Information asymmetry gives an edge to already established institutions and operators in the industry, making them valuable partners for anyone wanting to increase their exposure in the field.

Download the Q3 bitcoin market report

The report was created by Prasos Ltd and DcResearch.

Writer Pessi Peura