According to Delphi Digital, Bitcoin had a positive balance in June, for the fifth consecutive month. July is expected to be a month when Bitcoin will produce a double-digit return.
Delphi Digital reported that retail investors’ enthusiasm has returned to the market for Bitcoin and other crypto currencies. The digital assets research company indicated in a previous report that the Bitcoin floor was found in early May, when the price was about half of what it is today. On the other hand, Adamant Capital shared similar analyses in April.
Delphi Digital’s report indicates that June was the fifth consecutive month in which Bitcoin yielded positive returns, the longest streak in almost two years. This research and analysis firm also echoes recent statements by BitMEX CEO, Arthur Hayes, and Kraken CEO, Jesse Powell, on how retail investors continue driving Bitcoin.
Powell’s comments responded to claims that the recent increase in Bitcoin’s price was driven by manipulations and the fraud driven by stablecoin Tether.
In Delphi Digital’s new report, increasing Bitcoin searches on Google and a higher premium on Grayscale’s Bitcoin Investment Trust (GBTC) were provided as examples of retail investors’ renewed enthusiasm for Bitcoin.
Retail Investors’ Return
Delphi Digital reported that there are signs that institutions are becoming more comfortable with the cryptocurrency market, due to its great growth potential compared with the conventional market. However, they added that this market continues being driven by retail investors.
The search for the term “Bitcoin” on Google is widely used to monitor the public’s general interest in cryptocurrency. However, the report also indicates the increase in the GBTC premium as a sign that retail investors are returning to the digital assets market. A graph attached to the report showed that the GBTC premium hit the bottom along with the Bitcoin price around November 2018.
According to the report, the GBTC premium has increased since the massive sale in the fourth quarter of 2018. This demonstrates that retail investors’ enthusiasm has returned, at least in part, after last year’s brutal price decline. Institutional demand for GBTC is growing and almost 75% of GBTC investments in the first quarter of 2019 are made by institutions.
This latest report did not make any concrete predictions about how far the Bitcoin price will go next. However, it notes that July has historically been a positive month for Bitcoin.
The report says that, within its limited history, Bitcoin tends to perform well in July, being around double-digit monthly gains (+10%), with positive returns every year, except in 2014.
In an interview given by Spencer Bogart, a partner at Blockchain Capital, to Bloomberg, he explained why the kind of sudden moves in Bitcoin price in late June are something to be expected in this particular kind of “store-of-value” asset.
Regarding the latest rise in Bitcoin’s price, Facebook’s cryptocurrency, Libra, has been considered to be a reason, despite the fact that both crypto currencies do not have much to do with each other. Having sad that, many of speakers at last Bitcoin 2019 conference noted the possibility that Libra could be an educational experience for the masses and lead to certain benefits for Bitcoin.
By Willmen Blanco