• Bitcoin experienced its second-strongest January in its history, rising nearly 40%.
• There may be no single reason for BTC’s January price gain, but some suspect institutional investors.
• Matrixport suggested that as much as 85% of Bitcoin buying in January was the result of U.S. institutional players.

Bitcoin’s Big Month

Bitcoin experienced a monumental month in January 2023 with one of the strongest rallies since 2013, increasing by nearly 40%. While there is no definitive answer as to why Bitcoin’s market price surged so significantly during this time, many believe it was due to an influx of institutional investors entering the market.

Institutional Investors Enter the Market

CoinGecko noted that there were net inflows into digital asset funds in January 2023, particularly in the last two weeks, with Bitcoin being the main beneficiary. CoinShares also reported that total assets under management in digital asset investment products had risen to $28 billion at this time with Bitcoin leading the charge up 43% from November 2022’s low point.

US Institutions Make Their Mark

Matrixport found that almost all gains during January occurred during US market hours and they estimated that up to 85% of these increases could be attributed to US institutional players taking advantage of positive signals such as a pause in inflation growth and a squeeze on BTC short sellers when it came to buying crypto assets.

Asian Retail Traders Impact?

While US institutions seemed to take center stage when it came to driving up Bitcoin’s price during this period, Asian retail traders did have an impact as well; however their influence seemed to come more into play during Asian trading hours where prices fell rather than rose according to Matrixport’s findings.


Overall, this surge can be attributed partially to both US institutions and Asian retail traders; while the former took advantage of certain signals and drove up prices predominantly during US market hours, Asian retail traders were still able to make an impact albeit primarily when it came down to falling prices rather than increasing ones.

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