Right now, if you own Bitcoin or want to invest in the number one crypto asset in the market, you must be glued to the price wondering how far Bitcoin will go in its mad rush to the top! So one of the questions that comes to mind is, where does this incredible interest in Bitcoin come from and who are the investors who influence prices the most? One of the major responses today is the growing interest of institutional investors. Indeed, these big investors, used to Wall Street, we are talking here about investment funds or large companies with billions to invest who are turning to Bitcoin at the end of 2020.
Today, the companies that hold the most Bitcoin on the market are investment funds specializing in crypto assets such as Grayscale but since this year 2020, there is a great novelty. Large “classic” companies that are not directly linked to the crypto world have started investing heavily in Bitcoin. One of the first to have it is Microstrategy who invested in total this year over $ 500 million in Bitcoin, a sum which has also already grown well with the recent surge in prices. Recall that at the time of Microstrategy’s first investment, the price of Bitcoin was still evolving around 10,000 dollars. Today, the price has more than doubled!
We could then say that these large companies are run by crazy gamblers who, like you throw a dice at the casino, invest hundreds of millions of dollars. But it is quite the opposite, in fact these large companies invest not to take risks but to reduce them. Indeed, in the economic period that we are going through, the greatest risk seems to be that of leaving your savings and investments in the dollar. A currency which, like the euro, is on the verge of experiencing a significant devaluation. The cause ? The helicopter money of the central banks, FED and ECB which inject billions into the economy every day. So after Microstrategy is Square, the company of Jack Dorsey, boss of Twitter who followed with nearly $ 50 million left in BTC.
What do Jim Cramer (CNBC) have in common; JP Morgan; Stanley Druckenmiller (President of Hedge Fund); Michael Saylor (Microstrategy) and Larry Finck (BlackRock)? They all changed their minds on Bitcoin in 2020. Indeed, after denigrating and blithely criticizing from 2013 to 2017 today see Bitcoin as an asset that could also prove to be more useful than gold in reducing the overall risk of their investment portfolios. Most recently, the Ruffer investment fund announced yesterday that it has invested more than $ 750 million in value in Bitcoin. So we can say that Bitcoin has a bright future ahead of it and that big investors are only just beginning their BTC rush!
Guillaume has been passionate about Blockchain technologies and cryptocurrencies for several years now. He strongly believes in mass adoption of these in the years to come. Eager for crisp news and always on the lookout for the latest trends in the cryptocurrency market, he takes pleasure in sharing all their secrets with you!