The entry of institutional money into the cryptocurrency market could be one of the causes of the <a href="https://www.cryptoknowmics.com/crypto/crypto-market-update-litecoin-ltc-breaks-140-bnb-eth-rises-as-bitcoin-btc-rejects-bears/">rising</a> bitcoin market this 2019, says CoinShares. Analysts point out that the launch of Facebook, Bakkt, Fidelity projects legitimized the bitcoin market in the eyes of investors.

In the <a href="https://coinshares.co.uk/assets/resources/Research/h1-2019-crypto-report.pdf">report</a>, titled Crypto Report H1 2019, it was pointed out that the bitcoin price had an "aggressive recovery" after the second quarter of 2019. Analysts stress that although the rally reminded us of the historic price increase in 2017, both events have different factors and causes.

Bitcoin received widespread media attention in 2017 after its bullish trend began. Likewise, a record was set in the number of tweets and searches related to Bitcoin on Twitter and Google. The alternative currencies to bitcoin, such as ether, dash, or litecoin, also presented an increase in their prices for that year.

These four factors that accompanied the 2017 bitcoin rally are not present today, the report says. CoinShare analysts believe the 2017 bitcoin market was highly speculative, so news and overexposure from social networks motivated minority investors.

However, today, they consider that bitcoin prices have increased due to the introduction of institutional money in the crypto-money industry. Experts point out that Fidelity's announcement to inaugurate a bitcoin escrow service or the launch of the Bakkt platform for future contracts and bitcoin escrow is events that have legitimized cryptocurrency vis-à-vis, traditional investors.
<h2 style="text-align: center">A change for the upside</h2>
Facebook's cryptocurrency, pound, has also played in favor of the cryptocurrency market. The fact that companies like Visa, Mastercard or Uber want to get involved in a project like the Libra network can counteract years of negative press, says the report.

CoinShare analysts are not the first to notice the differences between the rising bitcoin market of 2017 and 2019. Will McDonough, blockchain development director at Diginex Americas, said current investors know more about cryptocurrencies and have assessed the risks of investing in them. Matti Greenspan, a senior analyst at eToro, and McDonough considered that bitcoin today has more sustainable prices.

A study by the North Pacific National Laboratory (NNP) also showed that social networks profoundly influenced interest in the bitcoin market in 2017. As a result, the researchers concluded that news and publications on Twitter and Reddit were able to manipulate the price of bitcoin by then.

As if that were not enough, in recent months, the correlation of bitcoin with other altcoins has decreased considerably. The most popular cryptocurrency in the ecosystem now has a market that behaves like gold, suggesting that more and more investors are using bitcoins as a store of value.

CoinShares: bitcoin rise could be due to inflow of institutional money

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CoinShares: bitcoin rise could be due to inflow of institutional money

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