Cryptocurrency

Bitcoin and the 2 trillion Dollar company: The institutions!

The previous all-time high, the Bitcoin exchange rate reached in December 2017. With a then-market value of 20.089 dollars on the 17.December managed to get the crypto-currency no 1 a market capitalisation of 331 billion USD. The fascination of this rally also brought a number of media for the initial reporting of the crypto-currency and many people heard for the first Time the word Bitcoin.

The peculiarity at the time was that the Bitcoin exchange rate started the year at just $ 1,000. In the period of less than 12 months, tons of fins on funds in the market. Gold-digger mood prevailed, and many were hoping for quick riches. Particularly interesting is the fact that this rapid price increase was simply driven only by the private investors here is. Now things have changed and we want to look at today.

Bitcoin and the 2 trillion Dollar company

According to the above-described Burst of the bubble required for Bitcoin some time of consolidation. Since BTC reached its low point in December 2018, with a market value of $ 3,200, a lot has happened in the entire Ecosystem. Not only is the Bitcoin price was quoted at least $ 10,000, significantly above this level.

The improvement came mainly on the part of institutional investors. Through platforms such as the CME Futures or Bakkt investors have to act now, the possibility of Bitcoin Futures instead of buying BTC on the spot market (or OTC). However, BTC are bought, which leads in particular to a shortage of supply. One of the best Cases for the digital currency arrives, because with the money of institutional investors, the often-quoted mass adoption comes.

Third most influential companies in the world economy positive

The asset Manager of Fidelity Investments, which manages about $ 2 trillion in funds, has spoken about his digital Department, Fidelity Digital Assets, a new study. It should be said that researchers from the ETH Zurich, to be referred to the company in a 2011 study as the third most influential companies in the world economy. At the heart of the said study to the demand of the institutions. Although the report is not yet publicly proclaimed the company via Twitter, the first findings:

In the Tweet it is to the interest of the institutions:

Digital Assets continue to grow in interest and Adoption at a variety of institutional investors.

Thus, Fidelity of Digital Assets is not clearly shows that the said Adoption is just wishful thinking, but empirically detectable.

Bitcoin attracts more and more interest

Also, we already reported a few days ago about the increasing interest of hedge funds. The hedge Fund Manager Paul Tudor Jones speech, for example, via BTC, and the current monetary policy, called it a Stimulus for the value of Bitcoin.

Tudor Jones used clear words and referred to the Cryptocurrency as “the fastest horse in the paddock”. By Covid-19, a catalyst for the digitization arose in the opinion of Jones. This in addition to the digitisation of existing organizations and processes, including the digitization of our money, what is driving Bitcoin in turn.

62 % of private CFD accounts lose money. No EU investor protection.

What do you think about the growing interest of institutional investors? – Bitcoin is a benefit course, or unaffected’t stay, because the investors can trade on the spot market?

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About the author

Eve Manning

Eve Manning

A native Texan, Eve first started out as a Finance Analyst and later realized that her true passion was not in trading but in writing. She leverages her experience in the Finance industry to analyse and write in-depth news articles covering the Cryptocurrencies, Economy & Finance industries.

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