Well, this conclusion is more of an inaccurate assumption according to Changpeng Zhao (CZ). In a recent interview with Bloomberg, the Binance CEO said that individual investors are still playing a major role in driving Bitcoin price 00 action. CZ said:
Binance Points to Retail Investors
We have not seen institutions growing faster… What we’ve seen is pickup in both places. The number of institutions coming into this industry has not increased that tremendously in 2019 yet.CZ explained that retail and institutional trading has continuously increased but retail investors still represent roughly 60% of trading volume on the exchange. This percentage is nearly identical to the previous year’s volume and this is worth noting since mega-companies like Bakkt, JPMorgan, and Goldman Sachs are said to be deeply involved with cryptocurrency. According to CZ, the growth in activity on Binance can be attributed to margin trading, and on July 11, Binance launched margin trading for its users. The new option allows traders to borrow three times their principal when investing in select cryptocurrencies. The Binance CEO said that 10,000 traders have signed up so far, and borrowed over $15 million on the first day alone. Other exchanges like Kraken and Bitfinex allow traders to borrow from 5 to 100 times their account value and its possible that these traders have helped to drive Bitcoin’s price up by 36% since the start of June.
Exchange operators like CZ are in charge of Bitcoin price using High-Frequency Trading bots to in order to push retail to buy & sell into their orders. Binance is well known for their false volume & trading bots that take-over markets and pump them in a matter of seconds.
Posted from my blog with SteemPress : https://247cryptonews.com/binance-ceo-retail-investors-not-institutions-are-leading-the-bull-market/