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“Big Purchase”: American Investment Company Acquires $100 Million Of Bitcoins

Multi-million dollar investing in Bitcoin is perhaps the trend of 2020. Institutional investors openly declare their readiness to enter the crypto market. Will there be big changes in the global financial environment?

Institutional interest in Bitcoin is growing

New York-based investment company Stone Ridge has acquired over 10,000 BTC. At the current exchange rate, this purchase is valued at over $100,000 million. This decision was made in the context of a new strategy for hedging the assets of the company’s clients, institutional investors.

The purchase was made by a subsidiary of Stone Ridge – the NYDIG, which was overshadowed by its parent organization for three years. It is not the first noticeable entry of NYDIG into the information field: in September 2020, it became known that the ex-head of Ripple, Chris Larsen, transferred XRP worth more than $115 million to this company.

Overall, 2020 saw a significant surge in interest in Bitcoin among financial market giants. In particular, a leading payment service provider, Square, acquired 4,709 BTC last week, which is the equivalent of about $50 million. MicroStrategy also announced a $425 million acquisition of Bitcoins.

Bitcoin as a lifeline

Analysts associate institutional excitement around Bitcoin with macroeconomic events. The proliferation of COVID-19, the US government’s fiscal and monetary stimulus, and the risk of global economic stagnation provoked nervousness in traditional markets and gave impetus for new players to enter the crypto market. Under these conditions, institutional investors are forced to rethink the composition of their portfolios.

The growing trend of portfolio hedging with digital assets was discussed by Robert Gutman, NYDIG CEO.

“The collapse in March 2020 amid the spread of the pandemic triggered a sharp rise in institutional investors who joined the crypto market. This trend will continue to gain momentum in the future. ”

Bitcoin once again shows us that the diversification of funds into crypto assets shows itself quite well even after the March price decline, we again reached the value of 10,000 USD and continue to grow slightly. From the technical analysis in the short term (about a month), we are in a growing channel, which means that the price grows slightly every day. For those who trade, it is better to refrain from short positions and take a closer look at long positions. Investors can purchase BTC at current values.