Bitcoin Analysis - Institutional vs Retail Volume Comparison

The signature characteristic of an early stage bull market is First Mover and Institutional Accumulation. The retail and weak hands get shaken out and puke their holdings to the institutions and large holders. These institutions and large holders have long investment time horizons, which is why we refer to them as strong hands. When the strong hands accumulate enough Bitcoin and soak up the weaker hands’ selling, the market will be positioned for significant price advancements as a majority of the selling is now exhausted.

Analyzing the volume flows in the CME (Institutional Exchange) vs Coinbase/Bitfinex (Retail Exchange) we can distinctively see that the CME led the accumulation of Bitcoin in early 2019 and once again, was more active during late Q4 2019 and January, 2020. All 3 periods were the lows in Bitcoin Price. CME Volume exploded higher early 2019, which led Bitcoin from $3,200 to $10,000. The CME has once again dwarfed the Retail Exchange Volumes the past 3 months which has taken Bitcoin from $6,800 to $10,000. We are witnessing the transfer of Bitcoin from the retail to the institutions as we begin the next Bull Market. The first 1/3 of the Bull Market is always far more tempered in regards to percentage gains as the institutions do not chase extended prices. Patience and discipline are critical, as Bitcoin follows trend better than any other asset (https://twitter.com/mjdsouza2/status/1218419839750017024).

In a Bitcoin Bull Market, the big money is made in the sitting, not the trading/scalping.