While Mt.Gox and the German government were cited as the reason for the recent decline in Bitcoin, Matrixport pointed to Korean investors for the decline.

Matrixport, which analyzed the connection between the decline in Bittcoin and Korean investors in its latest analysis, said that “the recent decline was probably influenced by Korean retail traders.”

At this point, analysts noted that most of Bitcoin’s decline over the last 30 days, 13 percent of the overall 15 percent decline, occurred during Asian trading hours.

Stating that this decrease shows that retail investors left the market and institutional investors entered the market, analysts said that as institutional investors bought BTC, the price stabilized and volatility decreased.

“We think that Korean retail investors were influential in Bitcoin’s recent decline. Because the majority of the overall decline in BTC occurred during Asian trading hours.

Additionally, as retail investors left the market, they were replaced by institutional investors. As can be seen from ETF entries, there is a visible transition from retail investors to institutional investors.

The market is now more stable and weekend volatility is minimal, as many investors also follow institutional buying and selling from Monday to Friday.

“Due to limited retail activity, Bitcoin is increasingly dominated by institutional investors, leading to reduced volatility.”

Analysts also pointed out in the report that BTC transaction volumes on South Korean exchanges have a significant share in their annual volumes, and said that Korean investors play an important role in altcoin volumes as well as in BTC.

According to the report, since there is no crypto futures market in South Korea, retail investors often turn to altcoins as a leverage opportunity.

*This is not investment advice.