JPMorgan Chase, one of the institutional investors to back cryptocurrencies and Bitcoin, has released data that suggests that retail investors are the biggest buyers of Bitcoin, at least this quarter.
An estimated 187,000 investors have purchased Bitcoin via PayPal and Square, with both payment processors enabling crypto payments recently. As JPMorgan puts it, retail investors are simply out-buying institutional investors.
Institutions may be credited with building confidence in Bitcoin as a safe asset for investment but retail traders appear to be the driving force behind the currency’s relentless growth.
Oanda analyst Ed Moya has argued that the NFT bonanza paired with the flurry of social media activity may be just the beginning.
“Now, with the Reddit-fueled meme stock craze cooling and novelties such as digital artwork setting records, retail traders – some now armed with $1,400 stimulus checks – are taking control”, he said.
NFT tokens are generating at least $10m in sales daily, Moya pointed out. Others, such as Brian Vendig from MJP Wealth Advisors, caution that a lot of the current retail demand stems from FOMO, or the fear of missing out, which may prove to be an unsuccessful investment strategy.