Fidelity and other big-name financial giants are buying a major stake in Bitcoin, according to a new report by CoinShares. It claims that this recent tsunami of institutional money is pushing Bitcoin’s price upward this year despite little retail interest.
There were suspicions all year that institutional investors were the ones responsible for Bitcoin’s impressive rise this year. Now, CoinShares sheds some light on this theory and seems to confirm it. The document looks at market trends from January through June 2019. What they found is that four significant characteristics of the current bull rally that differ from 2017: no increase in Bitcoin-related Google searches, no altcoin rally, little media attention, and no increase in Bitcoin-related tweets.
These realities would make one think that retail investors simply are not interested in the world’s first cryptocurrency just yet, and CoinShares suggests that this is true. Just consider that major players like Fidelity, Microsoft, Intercontinental Exchange, Facebook, and others are openly jumping into cryptocurrencies head-first. The report also confirms that Libra will prove to be a “watershed moment” in the history of cryptocurrencies, leading to it potentially becoming a household name. In short, the current Bitcoin rally is being led by major players in the financial world—and this would seem to indicate that there is still much upside once retail investors take notice as they did in 2017.
Other positive factors listed in the report include rising trading volume in USD, historical annual returns still matching the years-long trendline, volatility slowly decreasing on an annual basis, and Bitcoin’s ability to continually outperform traditional financial assets. Moreover, the network is as secure as its ever been, with Bitcoin’s hash rate hitting new all-time highs.
Overall, there is much room to be optimistic given that Bitcoin’s fundamentals seem to be stronger than ever.
Do you believe Bitcoin’s rally in 2019 is largely fueled by institutional investors? Let us know your thoughts in the comments down below.