BTC won over the institutional investors after it surged to an ATH of $17K in 2017 and the crypto headlined plenty of media outlets as we read at that time in our bitcoin news.
Analysts and major institutional figureheads bashed the promising digital asset and called it “Fraud” and useless but not while after, BTC suffered a huge correction with the price crashing by 70% in one year. For the retail investors, the warnings of the institutions and analysts that warned them seemed more true than ever. Even at that time, one thing was certain and that was crypto will never become mainstream without the help of institutions so BTC won over them.
Moving all the way to 2021, the same financial companies that doubted BTC are now their biggest supporters. Goldman Sachs refused to see it as a real asset class but now the investment bank endorses the cryptocurrency and reopened a crypto trading desk that offers BTC-based financial products to their clients. Another example was Visa which asserted that BTC is not a real payment system but then started offering crypto to their clients.
But what changed? There are plenty of factors that influence Bitcoin’s growing acceptance but the cryptocurrency matured enough as an asset class and this is evident as the growth-minded business that has high-risk appetites like Tesla and Microstrategy, invested billions of cash reserves in BTC. BTC’s current rally can be attributed to the institutional demand but as the inflows are slowing down, there’s a need for another influx of institutional buyers. Singapore’s $306 billion Temasek revealed that they also invested in BTC in 2018.
Furthermore, one of New Zealand’s pension funds disclosed that it is conservative retirement portfolio was not at 5%. The CEO of New York Digital Investment Group Robert Gutmann stated that more governments could look to invest in BTC over their sovereign wealth funds. NYDIG was advising a few sovereign wealth funds on BTC investments.
Regardless of its price, it’s clear that digital currency is becoming more accepted over the world in any form of entities like banks, fintech giants, and sovereign wealth funds.
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