Lawmakers and regulators’ increasing scrutiny of crypto markets, including the debate over the U.S. infrastructure bill’s crypto tax reporting provision, may be spooking retail investors but not institutional ones, recent blockchain data from Glassnode indicates.
These larger investors, as represented by large-value dollar transactions, fueled Bitcoin’s nearly 20% price gains since last week, the Berlin-based blockchain data firm found. A number of analysts say the trend shows that these organizations are focusing more on the cryptocurrency’s upside than potential obstacles.
“Investors are looking to the positives around regulation rather than the negative,” said Joel Kruger, cryptocurrency strategist at institutional crypto exchange LMAX Digital, noting “the fact that the U.S. government is listening and is aware that there is a provision around crypto in the infrastructure bill that needs more clarification.”
Bitcoin’s on-chain transaction volume with values of at least $1 million has risen 10% since the beginning of August, and accounts for nearly 70% of the total value transferred.