Millionaires are sticking to Bitcoin as the on-chain data shows that the demand for BTC increased dramatically in 2020. This data also shows that the limited supply of the asset could be causing a rush but let’s read more in our Bitcoin news today.
BTC is the world’s biggest cryptocurrency which saw a huge surge in demand last year especially amid the bleak economic outlook and the concerns of dollar inflation. The rally saw institutional players join and take notice of the asset as it broke through the previous all-time high of $19,000 to above $41,000. Some of the investors include Guggenheim Partners that filed its interest in BTC with the US SEC in 2020.
#Bitcoin is emerging in 2021 as the new, compelling institutional grade safe haven asset. Excess cash is a drag on shareholder value in the current monetary environment, so we can expect more firms to adopt Bitcoin as a treasury reserve asset.https://t.co/v3U697RpHv
— Michael Saylor (@michael_saylor) January 15, 2021
Others avoided it. Paul Tudor Jones who is a well-known billionaire investor put about 2% of his capital into the asset class saying that it was a “great speculation” but a fast horse among other crypto assets on the market. The tech companies FOMOed as well. Square for example which is founded by Twitter’s founder Jack Dorsey, invested $50 million of its treasury funds into BTC saying that it was an instrument of “economic empowerment” and a new way to participate in the global monetary system.
The world has 47m millionaires, 71% of them live in the US or EU, there's only 14.9m BTC in circulation, and only 4.1m BTC are liquid and therefore able to be bought.
HNW individuals just got notified they need an allocation, IMO this is the reason why BTC rocketed past 23k.
— Willy Woo (@woonomic) January 14, 2021
Microstrategy also joined in with a $550 million investment in BTC in a convertible note and used the proceeds to buy more BTC. Despite the volumes, the institutional interest in BTC is getting started as on-chain analyst Willy Woo explained:
“The world has 47m millionaires, 71% of them live in the US or EU, there’s only 14.9m BTC in circulation, and only 4.1m BTC are liquid and therefore able to be bought.”
A sell-side liquidity squeeze was the one responsible for the BTC purchases in the past month which pushed the price above $23,000 and higher. Woo added that the data showed a supply of 4.1 million liquid coins are dropping amid the money printing rounds and the stimulus checks announcements. An observation was made that the market is low on sellers right now but millionaires are sticking to bitcoin now despite this fact.
As recently reported, Novogratz’s Galaxy Digital considers getting into the BTC mining business and this new establishment will focus on offering crypto expertise and financial services to the miners. The company plans on launching its own project to mine BTc on a proprietary basis
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