Institutional Investors Are Buying Bitcoin, Reports Show
Fortunately, institutional investors finally started showing their interest in cryptocurrency markets. The reports indicate that big investors and hedge fund managers are buying Bitcoin following a massive price correction. This could turn out to be a positive signal for struggling cryptocurrency markets.
The market has lost all the gains that it had generated during the final quarter of last year. Bitcoin is currently trading at the lowest level in the past 14 months. Its price dropped close to 80% from an all-time high of $20,000 mark that it had hit at the beginning of this year.
But Institutional Investors See the Selloff as a Buying Opportunity
Buying assets at lower prices have always been considered as the best investment strategy. And institutional investors are using this strategy to capitalize on the considerable selloff in crypto markets.
Grayscale Bitcoin Investment Trust (GBTC) bought an additional 30,600 Bitcoins during the current bearish trend, bringing its total Bitcoin holdings to 203,000. This represents almost one percent of the total circulating supply.
Diar’s crypto analytics unit reported: “Record inflows, however, have resulted in record Bitcoin equivalent holdings with December notching up a little versus the start of the previous month.”
The crypto market, on the other hand, continues to ignore the increasing interest of institutional and Wall Street investors in cryptocurrency markets.
Several forward-thinking crypto innovators and institutions are establishing their crypto services, products, and platforms. Goldman Sachs, Fidelity, and ICE are among the big names that have announced to offer their services to crypto traders.
Ed Cooper, who is the head of Mobile at Financial technology company Revolut, is significantly bullish about the crypto’s fortunes.
He said: ”While Bitcoin recorded one of its steepest monthly declines in November, we expect to see a return to more normal trading soon. We should soon see the price consolidate, with price increases driven by technological advances and increased adoption rather than the news cycle. Bitcoin has had to weather the storm in the last few months, but it will most likely regain its dominance in 2019.”
Increasing regulations and improving trading environment in cryptocurrency exchanges are adding to institutional investor’s confidence. Governments all over the world are looking to regulate crypto markets; the SEC and other government organizations are closely overseeing the emerging market to reduce the risk of fraud and illegal activities.
Do you believe institutional investments would help in repelling the bearish trend? Let us know about your thoughts in the comments section.