Bitcoin has already repeatedly proved that criticism and prejudice towards cryptocurrency have no reason to live. A vivid example is 2017 when the price of a crypto asset soared to a maximum of $20,000. As the recent data show, institutional investors are not averse to acquiring a “tidbit” in the form of Bitcoin. Are investors ready to bet on Bitcoin and leave behind traditional assets?
Why has interest in Bitcoin soared?
In 2020, institutional investors began to more actively consider the possibility of including Bitcoin in their portfolios. It is confirmed by the data published by LongHash: in 2020, the influx of capital to Bitcoin from large investors and institutions increased to 56%.
The growth in demand for Bitcoin is due to several factors, which in 2002 were reinforced by the uncertain macroeconomic situation.
Firstly, the maturity of Bitcoin as a financial asset should note. The flagship cryptocurrency has demonstrated viability and resistance to abrupt changes in the financial market. Unlike traditional assets, Bitcoin can adapt to macroeconomic circumstances and emerge victorious from difficult conditions. In particular, in March, after a 38% collapse, Bitcoin was able to not only return to pre-crisis indicators but also add to the price.
While Gold and stocks were very cautiously returning to their previous rhythm in April, Bitcoin was already catching a wave of bullish impulses. Bitcoin resilience has become a key trigger for increasing confidence in the crypto asset and has forced many of the crypto skeptics to change their attitude towards it.
In particular, we can notice warming to cryptocurrency on the part of JP Morgan, which Bitcoin previously called false-act. He recently noted:
“Bitcoin, like other assets, could not avoid a collapse in March. But he was able to “get out” this time. As we can see, Bitcoin’s strength is cost retention despite difficult market conditions. ”
It should also note that Bitcoin fell into the focus of attention not only of private institutional investors but also of large institutions. Cryptocurrency today is increasingly seen as a hedge asset, and many of the largest investors are ready to bet on innovative blockchain technologies to protect capital from losses. Crypto analysts see this as a positive trend because an increase in institutional interest can push the price of Bitcoin up.
This article is intended as a news item to inform our readers of various events and developments that affect, or that might in the future affect, the value of the cryptocurrency described above. The information contained herein is not intended to provide, and it does not provide, sufficient information to form the basis for an investment decision, and you should not rely on this information for that purpose.