During its research, Chainalysis got to know that most of the professional investors in North America are favouring Bitcoin in a disproportionate manner.
The on-chain analytics firm in its research report further mentioned, “The increasing dominance of North America’s professional [crypto] market since December 2019 appears to be almost entirely driven by transfers of $1 million or more worth of cryptocurrency, many of which we believe are coming from institutional investors.”
Additionally, the on-chain data firm in its report stated that compared to professional investors, there are some growing classes of institutional investors in North America who transfer a larger amount of cryptocurrencies.
From the past few years, the institutional share of the market is growing and for some of the investors, these shares are the authorized cryptocurrency.
According to the Chainalysis report, starting from late-2019, the value of Bitcoin transaction in North America, which was above $1 million, has risen from 46 per cent to 57 per cent in May 2020.
At the same time, the professional market activity rose from 87 per cent to 92 per cent. It could be said that the dominance of the Professional Market of North America, which started in December 2019, was driven by the $1 million worth cryptoc transfers.
It has been notified that the struggle of cryptocurrency is still not over in the country because of the regulators, who are analysing these class-assets.
The head researcher at Chainalysis, Kimberly Grauer, believes that as the regulators get to know more about it their trust in crypto space would start growing.
Grauer specified that the regulators would need to grow their trust in cryptocurrency, they should know how it’s transparency could be beneficial.
Additionally, she claimed that presently the institutional market for cryptocurrency is immature and fragmented, the ecosystem would need more investment for its growth.