The number of individual investors in cryptocurrency decreased significantly in the first quarter of 2022 and institutions are taking the lead
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Answer The number of individual investors in cryptocurrency decreased significantly in the first quarter of 2022 and institutions are taking the lead
After an exciting and shiny 2021, this has been a really tough year for all the retail investors in the crypto market.
The cryptocurrency market has undergone several correction cycles and the last one is already in place.
In just the last 45 days, the cryptocurrency market has eroded the wealth of individual investors by more than $800 billion.
Coinbase data shows that the exodus of individual investors from the cryptocurrency market began during the first quarter of 2022.
Citing data released by cryptocurrency exchange Coinbase last week, CryptoQuant CEO Ki Young Joo stated:
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76% of Coinbase’s trading volume came from institutional investors in the first quarter of 2022.
He added:
Individual investors are leaving the cryptocurrency market.
This is not the case for institutions that continue to accumulate and accumulate bitcoin.
But there is still concern about the overall volume, which has fallen significantly compared to last year.
76% of turnover at Tweet embed It came from institutional investors in the first quarter of 2022.
Source: Coinbase shareholder letter (May 10, 2022) pic.twitter.com/HuRt91nApE
– Ki Young-ju (@ki_young_ju) May 18 2022
There is no doubt that the recent market correction has shaken both retail and institutional investors alike.
At the same time, retail investors have recently lost a lot of money especially with the collapse of Terra Project last week.
In addition, the Bitcoin Fear and Greed Index shows that we are currently in the area of intense fear.
However, this may be the time for the long-term buildup.
Read:Elon Musk: The worst inflation is behind us…what does this mean for the crypto market?
Return of financial flows to bitcoin funds:
On Monday, May 16, I posted CoinShares A report says institutions pumped $300 million into bitcoin funds last week despite a major correction in the market.
The majority of these funds came from North American institutions while European institutions recorded net outflows.
The report stated that institutions decided to withdraw large amounts of digital currencies, which have fallen significantly.
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