Bybit CEO Ben Zhou attributes the current cryptocurrency bull market to institutional investors, with a 186% increase in institutional capital flows last year.
The cryptocurrency market witnessed a new bull run, hitting an all-time high of $73,750 on March 14, driven not by retail buying but by a steady influx of institutional capital, says Ben Zhou, CEO of Bybit, one of the top three cryptocurrency exchanges in the world. trading volume.
Zhou’s insights, shared during a discussion at the Blockchain Life 2024 Dubai conference, paint a picture of a maturing crypto landscape. The era of unregulated exchanges and impulsive retail trading dominated the market.
Today, advanced infrastructure, increased security measures and strategic collaborations attract established financial institutions to this space.
Institutional Investors Drive Bybit’s Growth
From the Bybit CEO’s point of view, institutional investors have driven the momentum of this bull market. After partnering with esteemed third-party custodians like Copper and Fireblocks, the exchange recorded a notable 186% increase in institutional capital inflow during 2023.
“This bull market has so far been driven by institutions… Since partnering with third-party custodians like Copper and Fireblocks, institutional capital flows increased by 186% last year,” Zhou said.
This trend aligns with the long-awaited introduction of Bitcoin spot ETFs in several major markets. These instruments offer institutions a familiar and regulated investment avenue, allowing for a smoother entry into the crypto space. Furthermore, the upcoming Bitcoin halving event scheduled for April 20 is expected to push this trend to new highs.
Bybit, under Zhou’s leadership, has meticulously improved its platform since the previous crypto market surge in 2021. These advancements specifically cater to the needs of institutional investors, offering customized solutions for their substantial capital and complex trading strategies.
According to Zhou, Bybit has a versatile trading platform where any token can be exchanged for any asset. This flexibility, along with tools for spread trading, arbitrage and advanced funding rate management, allows institutional clients to employ sophisticated strategies within a secure environment.
“Bybit has a very seamless trading system where you can use any token to trade anything. […] Bybit’s institutional clients have many tools; they can do spread trading, arbitrage funding rates and all kinds of sophisticated trading,” Zhou pointed out.
Bybit: Bitcoin Supply Will Run Out on Exchanges in 9 Months
Bitcoin’s post-halving supply dynamics will cause exchange reserves to run out of Bitcoin, according to an April 15 report from Bybit. The report comes amid a broader market decline, which saw Bitcoin fall more than 10% over the past week to $62,924, as of 13:36 UTC, according to CoinMarketCap.
Bybit, the world’s third-largest exchange, expects Bitcoin prices to begin recovering from the current correction, according to the report.
Bybit Combines Complex Financial Instruments for Retail Traders
While institutions take center stage, Bybit has not forgotten its loyal retail investor base of 25 million users. The exchange is actively bridging the gap between complex financial instruments and everyday traders.
“We have a unique product called perpetual protection,” Zhou explained. This innovative tool uses options contracts to safeguard perpetual positions from significant losses, offering retail investors a safety net that often does not exist in traditional markets.
Bybit’s Unified Trading Account (UTA) further empowers retail traders by providing them with a holistic view of their portfolios and simplified access to various crypto assets. This user-friendly design simplifies trading of derivatives and options, making these once intimidating financial instruments more accessible and understandable to a broader audience.
By Leonardo Perez
