Now that institutions have firmly entered the cryptocurrency market, with multiple companies investing over $1 billion in Bitcoin, we are seeing record-breaking trading volumes.
With the continued maturity of the technology and the economic and social problems the world faced due to a pandemic, many institutions have started viewing Bitcoin and other cryptocurrencies as the potential value disruptor that it was created to be.
According to Skew, both CME Bitcoin futures and volume on LMAX Digital have reached all-time high trading volumes.
CME Bitcoin futures saw $2.7 billion in trading volume while LMAX Digital saw $2.6 billion in volume — both new records.
As analyst and investor Joseph Young pointed out in a tweet,
“Institutions ARE here. – CME Bitcoin futures volume hit an all-time high today at $2.7 billion. – LMAX Digital (institutional platform) hit ATH volume at $2.6 billion.”
The fact that institutional investment platforms and products are seeing all-time highs in volume while Bitcoin is at it’s highest price in history is an extremely bullish sign for cryptocurrency. This increased volume alongside a stable growth in price shows a positive and strong outlook by the market.
It’s been a common trope within the cryptocurrency ecosystem to discuss institutional investors joining in as one of the most important catalysts for mainstream adoption. Also, institutions have billions of dollars to invest with, amounts that dwarf the ability of most retail investors.
This increase among institutions is setting a precedent for the future of cryptocurrencies. This is especially true for Bitcoin, as the world starts to view it as a legitimate hedge against fiat currency.
There are many factors that should be credited for this increase in cryptocurrency growth and adoption, but one of the most important is the vocal and financial backing of people like Michael Saylor.
Saylor, the CEO of MicroStrategy, has become one of the strongest proponents of Bitcoin. Starting out as a Bitcoin skeptic, Saylor has now invested over $1.3 billion in Bitcoin on behalf of MicroStrategy, one of the biggest business intelligence firms in the world, and has personally invested $100s of millions of his own money into Bitcoin.
MicroStrategy isn’t the only firm aggressively pursuing Bitcoin either. Since the MicroStrategy purchase, many other companies have bitten the bullet and decided to diversify into Bitcoin. This could be setting a precedent for other institutional investors around the world.