{"id":108112,"date":"2020-11-09T15:00:00","date_gmt":"2020-11-09T12:00:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/silicon-valley-and-smart-money-are-behind-this-bitcoin-rally-data-suggests\/"},"modified":"2020-11-09T15:00:00","modified_gmt":"2020-11-09T12:00:00","slug":"silicon-valley-and-smart-money-are-behind-this-bitcoin-rally-data-suggests","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/silicon-valley-and-smart-money-are-behind-this-bitcoin-rally-data-suggests\/","title":{"rendered":"# Silicon Valley and \u2018smart money\u2019 are behind this Bitcoin rally, data suggests"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3dd2812dabd\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3dd2812dabd\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/silicon-valley-and-smart-money-are-behind-this-bitcoin-rally-data-suggests\/#High-net-worth_investors_are_buying_Bitcoin\" >High-net-worth investors are buying Bitcoin<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/silicon-valley-and-smart-money-are-behind-this-bitcoin-rally-data-suggests\/#New_money_is_pouring_in\" >New money is pouring in<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/silicon-valley-and-smart-money-are-behind-this-bitcoin-rally-data-suggests\/#Google_Trends_data_shows_relatively_low_retail_interest\" >Google Trends data shows relatively low retail interest<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Silicon Valley and \u2018smart money\u2019 are behind this Bitcoin rally, data suggests <\/strong>&#8221;<\/p>\n<div data-v-5a136f3a=\"\">Bitcoin (BTC) is continuing to show strong momentum even after a major rally. Key data points show that the uptrend has likely been fueled by smart money in recent months. This means retail or mainstream investors have been largely on the sidelines as BTC price surpassed $15,000 this month.<\/p>\n<p>In 2017, when the price of Bitcoin hit an all-time high at $20,000, the retail demand was at its peak. Google Trends data soared, mainstream <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a> coverage noticeably increased, and spot exchange volumes exploded across major markets, especially in South Korea and Japan.<\/p>\n<p>This time, the Google Trends interest is relatively low for the keyword \u201cBitcoin\u201d while on-chain data shows smart money is accumulating BTC.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"High-net-worth_investors_are_buying_Bitcoin\"><\/span>High-net-worth investors are buying Bitcoin<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Moreover, according to on-chain analyst Willy Woo, it has been mostly high-net-worth investors who have been purchasing Bitcoin. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2020-11\/42d9c047-cf8c-4d3f-9298-10e0ebf2b9bc.jpg\" alt=\"\" title=\"\"\/><figcaption style=\"text-align: center;\"><em>Bitcoin mean transfer volume. Source: Glassnode<\/em><\/figcaption><\/figure>\n<p>When whales buy Bitcoin, they mostly facilitate the deals through the over-the-counter (OTC) market. Over time, spot and derivatives markets trail the OTC market as whales lead the upsurge. Woo <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/woonomic\/status\/1325673978321539072?s=20\">said<\/a>:<\/p>\n<blockquote><p>\u201cWho has been buying this rally? It&#8217;s smart money&#8230; High Net Worth Individuals. You can see the average transaction value between investors taking a big jump upwards. OTC desks are seeing this too. Bitcoin is still in it&#8217;s stealth phase of its bull run.\u201d<\/p><\/blockquote>\n<p>The trend of whales frontrunning retail investors is optimistic because it shows Bitcoin is still in its nascent bull phase. Large capital from new retail and mainstream investors is yet to enter the cryptocurrency market.<\/p>\n<p>Another Glassnode metrics paints a <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/glassnodealerts\/status\/1325351287429476353?s=21\">similar trend<\/a>. The number of Bitcoin addresses holding more than 100 BTC hit a seven-month high at 16,271.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2020-11\/2300ee41-f59a-48c3-b048-47bedad2768b.jpg\" alt=\"\" title=\"\"\/><figcaption style=\"text-align: center;\"><em>The number of addresses holding over 100 BTC. Source: Glassnode<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"New_money_is_pouring_in\"><\/span>New money is pouring in<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Whales consistently buying Bitcoin over the past few months is optimistic in itself. But, Woo emphasized that the number of new whales has also increased. <\/p>\n<p>If the number of addresses containing large amounts of Bitcoin increases, analysts consider it as an overall spike in new whales.<\/p>\n<p>The rise in more high-net-worth individuals accumulating Bitcoin coincides with the start of the recent institutional frenzy around BTC. <\/p>\n<p>Following Square\u2019s BTC purchase worth $50 million, the number of high-net-worth investors in the Bitcoin market noticeably increased. Woo explained:<\/p>\n<blockquote><p>\u201cBest of all we are not just seeing smart money flow in, it&#8217;s NEW smart money. Orange line is the rate of new investors coming in per hour previously unseen before on the blockchain. It&#8217;s seriously bullish.\u201d<\/p><\/blockquote>\n<h2><span class=\"ez-toc-section\" id=\"Google_Trends_data_shows_relatively_low_retail_interest\"><\/span>Google Trends data shows relatively low retail interest<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Google Trends data is indicating a similar narrative as on-chain data points. The search volume for the keyword \u201cBitcoin\u201d is currently less than 10% compared to the 2017 top. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2020-11\/8df31f99-1de0-427b-9844-2c55544477e5.png\" alt=\"\" title=\"\"\/><figcaption style=\"text-align: center;\"><em>Bitcoin search volume on Google. Source: Google Trends<\/em><\/figcaption><\/figure>\n<p>Nevertheless, while the search volume for Bitcoin remains low, there is a particularly high interest coming from states like Hawaii, California, Nevada and Washington.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2020-11\/41cabc9c-c316-47c7-bcad-e2fe99d05503.png\" alt=\"\" title=\"\"\/><figcaption style=\"text-align: center;\"><em>Bitcoin search interest by subregion in the U.S. Source: Google Trends<\/em><\/figcaption><\/figure>\n<p>Interestingly, California and Hawaii <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/worldpopulationreview.com\/state-rankings\/per-capita-income-by-state\">rank<\/a> as the third and fourth highest in per capita income by state in 2020. <\/p>\n<p>Moreover, San Jose\/San Francisco in California i.e. Silicon Valley is ranked as the top metro region for Bitcoin interest. Silicon Valley is, of course, home to many high-net-worth investors and entrepreneurs.<\/p>\n<\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener noreferrer\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/silicon-valley-and-smart-money-are-behind-this-bitcoin-rally-data-suggests\" target=\"_blank\" rel=\"noopener noreferrer\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Silicon Valley and \u2018smart money\u2019 are behind this Bitcoin rally, data suggests &#8221; Bitcoin (BTC) is continuing to show strong momentum even after a major rally. Key data points show that the uptrend has likely been fueled by smart money in recent months. This means retail or mainstream investors have been largely on the&#8230;<\/p>\n","protected":false},"author":1,"featured_media":108113,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2020-10\/150de49a-7ff8-4a7b-8f8d-ad70e351379e.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74937,74939,73785],"class_list":["post-108112","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-price","tag-market-analysis","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/108112","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=108112"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/108112\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/108113"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=108112"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=108112"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=108112"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}