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- Insights
- Cryptocurrencies
- Stocks
- White Papers
- Industry
- Geography
The rapid rise of cryptocurrency has not only attracted retail and individual investors, it has, in fact, drawn the attention of several institutional investors who are keenly eyeing the booming sector. The crypto market, followed by the introduction of Bitcoin in 2009, has been driven primarily by technology and fintech fanatics. But with their growing popularity, cryptocurrencies witnessed a massive adoption among major financial institutions and even among nations. Bitcoin's resilience to grow and generate profits has made it the face of the crypto market. Initially, the crypto was dismissed by institutional investors who were not willing to put their money on a 'so-called' decentralized asset, which was in fact virtual, and not even physically present. BTC was infamous for being the currency of criminals, hackers, and other malicious practitioners. The current shift in approach has been driven by a number of factors, starting from the incredible success of Bitcoin and other cryptocurrencies. Institutional investors are shifting their money to Bitcoin and other digital assets in order to diversify their portfolios and generate billions of dollars of profits from virtual currencies. In fact, institutional investments might be one of the primary reasons why Bitcoin will likely soar high and topple its previous all-time highs in the coming months.
The attention and excitement around Bitcoin over the past two years has generated far more questions and complications. Also, we cannot ignore the fact that governments around the world are looking for various ways to regulate the cryptocurrency market, leading to negative speculations and fears of crypto banning spilling all over the market. The first buying wave of Bitcoin started around March 2020, when reports revealed that large investors are gathering in the crypto market and are more interested in Bitcoin. By September and October of 2021, the Bitcoin price reached massive highs, taking the entire crypto market along with it. The reports revealed that most of these investors were mostly institutional and were from prominent companies.
When the crypto market plummeted in late 2021, Bitcoin went down drastically and remained in the 'crypto winter' for quite some time. Even though BTC is trying to find its way back into the market and regain its lost position, various factors, including investor speculation are hindering the crypto from regaining its lost glory. Around April 4 and 5, Bitcoin crossed the US$47,000 mark and etched around the US$48,000 resistance, but shortly fell back towards its old trends, plummeting all the way back to US$40,000. But institutional investors did not let go of this opportunity. Instead, they started investing. Bitcoin will always show hopes of taking over the global financial and economic markets, but its extreme volatility is quite questionable.
Recently, Bitcoin witnessed an increased number of investments of approximately US$95 million within a week. This marks the week of highest investment in 2022. The last time institutional investors demonstrated this much trust in BTC was back in December 2021. Meanwhile, Ethereum also saw an influx of new investors, along with other popular cryptocurrencies like Solana, Polkadot, and Binance Coin. It is hard to determine if all of these are institutional investors or not, but it is quite clear that investments are increasing in Bitcoin, with chances of its market value reigning the market again, by the end of 2022.
Several factors like the importance of decentralized currencies like Bitcoin in the Ukraine-Russia crisis, and the executive order on cryptocurrencies by the Biden government have raised the market value of all digital assets including Bitcoin. Well, these factors will finally indicate a rise in the number of institutional investments, finally resulting in the bullish Bitcoin price rally.
