Chainalysis：The 2020 Bitcoin Surge is a Sign of the Cryptocurrency Market's Maturation

The crypto analysis company Chainalysis released a blog post stating that the data shows that Bitcoin's surge in 2020 is driven more by buyers who bought Bitcoin for the first time and institutional buyers who want to exchange fiat for Bitcoin to hedge against macroeconomic trends. Bitcoin's surge in 2020 is a sign of the maturity of the cryptocurrency market. 

Chainalysis analyzed that in 2017, most of the demand for Bitcoin came from individuals, and institutions began to buy Bitcoin in 2020. Compared with 2017, with the Bitcoin price exceeding $10,000, the number of transfers worth $1 million or more on exchanges in 2020 has increased by 19%. At the same time, a large number of exchanges that mainly serve North America flooded the market in 2020. Institutional investors (mainly in North America and Europe) driving the current surge of Bitcoin are more likely to buy Bitcoins in North America for reasons of ease of use and regulation. 

By Amy Liu

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