- Institutional Investors And The Current Bullish Trend
The bullish trend presently playing out in the crypto market has taken the attention of the entire crypto community.
The crypto-verse has seen a massive turn up from institutional investors so far this year. Seemingly, the huge funds being pumped into cryptocurrencies, especially Bitcoin by large institutions such as MicroStrategy, Paypal, and other institutional investors are chiefly responsible for the current bullish trend in the market.
Brett Tejpaul, the head of institutional coverage at Coinbase, in a recent interview with Heidrick & Struggles via Youtube Channel, revealed that buying interest from institutional investors has risen beyond expectations compared to when he began his career at Coinbase.
“We’ve had an explosion of activity… I joined in April of this year. At that time, our institutional assets under custody were $6 billion. Today, we stand at over $20 billion. So more than a three-time increase…”
“We’re now measuring the fresh capital coming into crypto principally being allocated to Bitcoin in the billions and so week after week after week we’ve had an explosion of incoming capital,” He said.
Tejpaul spoke further on the role of major hedge funds, banks, and now PayPal has to play on institutional adoption.
“For people sitting on the sideline that are now looking at the major banks, the major accounting firms, major hedge funds, major endowments, and now PayPal is getting into space. It’s unleashed the second wave of institutional adoption,” he said.
After bitcoin crossed $18,000, several millionaires, perhaps for FOMO-related reasons, disclosed their interests to invest in cryptocurrencies before the end of 2022. Latest report has shown the number of Bitcoin whales is growing at a record pace.
DeVere Group, one of the world’s most prominent independent financial advisory companies, recently found out that 73% of poll participants are now already invested or are preparing to invest in thriving digital assets, such as Ethereum, Bitcoin, and XRP, before the end of 2022.
Speaking about the price of Bitcoin and factors that could facilitate more adoption and propel the leading digital asset to new highs, The founder and CEO of the world’s largest publicly traded business intelligence firm –MicroStrategy said only a handful of multi-billionaires are needed to ignite a steep rise in the price of Bitcoin.
“There are people that’ll put $500 million into a bad idea. If you’ve got $100 billion in your portfolio, you might bet $500 million expecting you’ll get 100 to one return 1% of the time or 5% of the time and think that’s a good idea. So I think that’s why everything’s accelerating. It’s a fire. It’s a campfire, then it’s a bonfire, then it’s a forest fire, then you’re like ‘I don’t get it, why is the fire spreading twice as fast?’ Well, because this is an exponential process.” Saylor said.
He goes on to explain that the first person who is sold on BTC and invests a few billion dollars in the largest digital asset will channel more energy into the Bitcoin network than the last 10 million people put together.
“It’s important that 100 million people embrace Bitcoin but there are 10 people that can triple the price of Bitcoin. 10. This is not like Facebook, nobody ever brought a billion friends to Facebook… This is like when a person with $10 billion decides that they want to adopt this network and they put $2 or $3 billion on the network, that’s going to be more monetary energy that flowed into the network than the first 10 million people put into the network. It’s a ten million to one gain
“Here’s the other thing. When a person with $10 billion puts $10 billion on the network, they’ve got a friend with $10 billion. Warren Buffett (Berkshire Hathaway CEO) plays bridge with Bill Gates (Microsoft founder) and then they talk with Mark Zuckerberg (Facebook CEO and founder). So when this hits that social network, it’s like a billion to two billion to four billion to eight billion and those four decisions, those four blocks have more impact on the network than the first 10 million blocks.” He added.
- Date of publication:
- Sun, 11/22/2020 - 09:25
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