As Bitcoin price rises toward $18,000 and traders attempt to secure a new all-time high, the surge of institutional investors jumping on the Bitcoin.
This time, institutional and retail investors are both keen to accumulate Bitcoin, and data from crypto derivatives markets shows institutional investors are driving Bitcoin volumes to new highs.
According to research from Grayscale Investments, a digital asset management company that currently holds over $9.8 billion in assets under management, the coronavirus pandemic may be a primary driver of Bitcoin's current rally.
According to the company's yearly survey, 83% of all Bitcoin investors started in the last 12 months, a time when COVID-19 infections were minimal.
38% of all current Bitcoin investors interviewed joined in the last four months, and among these, 63% say that the economic disruption caused by COVID-19 positively influenced their decision to purchase BTC. Bitcoin is becoming mainstream.
Grayscale's survey also shows that Bitcoin is becoming more mainstream with the general public and investor class.
Will Bitcoin lose its allure once COVID-19 is gone?
The question of how Bitcoin price will react to the eradication of COVID-19 is a valid question on the mind of some investors.
"Covid-19 was the match that lit the flame for institutional adoption. But the firewood was building up long before it. Now that the fire is burning, it will take a lot of water to put it out. When the world is finally cured of Covid-19, the economy will still be sick with debt. And central banks will continue to print money to try and inflate away those debts, like they have done since the 2008 financial crisis. This means the institutional narrative of bitcoin being an inflation hedge is likely to continue long after the pandemic is over."
While some analysts may overestimate how the coronavirus pandemic impacted Bitcoin's 2020 rally, it is clear that it played a role in accelerating investors' interest in cryptocurrencies.
Grayscale survey connects COVID-19 pandemic to new Bitcoin purchases
gepubliceerd op Nov 17, 2020
by Cointele | gepubliceerd op Coinage
Vermeld in dit artikel
Why Bitcoin's market cap just hit a new record high before the price did
Recent rally saw its market cap push above $330 billion for the first time ever as prices rallied above $17,750 late Nov. 17.
Comptroller reveals path for crypto companies to become banks
Acting Comptroller of the Currency Brian Brooks - soon to be confirmed in the role full time - has revealed another way for U.S. crypto custody providers to receive a charter to operate as a federally-approved bank.
Not dead yet: Bitcoin Cash ABC up 70% as Sechet releases new client
Amaury Sechet's Bitcoin ABC coin is up 70% today as the developer announced a new upgrade for the client software that includes stability-related fixes for both forks of the Bitcoin Cash client.