Wall Street Investors Are Massively Buying Bitcoin: What Is The Reason Of Such An Interest?
Bitcoin has become the focus of Wall Street, as interest in digital currencies is gaining momentum. Over the past two weeks, the volume of flagship cryptocurrency purchases by institutional investors has increased. The excitement did not stop even the skepticism of the leading stock market player, Goldman Sachs, who is convinced that the purchase of Bitcoin is impractical in the current market conditions.
Why did Bitcoin suddenly become a “tidbit” in the financial market?
The increased interest in Bitcoin is primarily due to the difficult macroeconomic situation in the world. Institutional investors see Bitcoin as a hedge asset that will allow them to protect their savings from inflation. In particular, the largest player in the investment market, Grayscale Investments, is interested in digital currency.
Independent cryptanalyst Kevin Rook recently published data according to which Grayscale Investments bought 18,910 BTC from May 11, that is, from the moment when Bitcoin halving occurred. This news is compounded by an important detail: after halving, only 11.337 BTC were mined. Thus, the company bought Bitcoins, which were mined earlier and were in the hands of miners as savings.
Kevin Rook also added:
“Wall Street continues to buy Bitcoin, despite Goldman Sachs warning. Investors from Grayscale Investments bought more than 150% of Bitcoin, which was mined after a halving in May, and this is not the first such action on the part of the company.”
Cryptanalysts are optimistic about the increasing interest in cryptocurrency from institutional investors. Many of them expect that the market model will work, according to which the demand for the asset increases with a decrease in supply. Thus, after a halving in the current market conditions, the price of Bitcoin may soar shortly.
Bitcoin at the epicenter of large investors
Goldman Sachs does not approve of the booming activity around Bitcoin. The management of a bank believes that this crypto asset is not viable and profitable, and can also easily succumb to the negative impact of inflation.
Assessing this situation, the analyst, Dave the Wave said:
“If a large investment bank began to monitor Bitcoin’s trading activity, this is a good signal. They say about BTC, and this is an excellent advertisement for the cryptocurrency in general. ”
Who would have thought earlier that large investment investors would fight for Bitcoin, an asset around which there has been an eternal debate for more than 10 years? Whether investors will remain interested in the crypto asset will be shown just later.