The cryptocurrency bitcoin is trading at an all-time high relative to its social activity, explains the crypto research firm Tie. The analysts at Tie believe the ratio indicates that bitcoin is being driven by institutional trading. Meanwhile, statistics from Google Trends shows the terms “bitcoin” and “buy bitcoin” dropped from the 100 point highs to 65 on June 14, 2020.
Tie Research: ‘Market Cap Increasing More Than Social Media Activity May Suggest Bitcoin Is Now More Driven by Institutional Trading’
This week the research firm the Tie tweeted about bitcoin’s (BTC) social activity to the company’s 6,300 Twitter followers. The company thinks that institutional interest and trading is a driving force right now. “Bitcoin is trading at an all-time high (ATH) relative to its social activity,” the Tie tweeted on Thursday.
“Increasing NVTweet Ratio may suggest BTC is now more driven by institutional trading as market cap is increasing faster than social volume. NVTweet Ratio = Market Cap / 1M / 30Day Average Tweet Volume,” the researchers added.
A number of speculators believe that institutional interest has been involved with the cryptocurrency market ecosystem for quite some time now.
On Friday, one of the top banking firms in Japan, Nomura launched it’s highly anticipated custody service for the company’s institutional clientele. The service called “Komainu” is a partnership between Nomura and Coinshares and Ledger. Moreover, the research team at Fidelity Digital Assets revealed in a recent report that out of 800 institutional investors worldwide, 36% have invested in crypto assets.
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Discussing the subject of institutional interest toward bitcoin (BTC
