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Grayscale survey connects COVID-19 pandemic to new Bitcoin purchases

Grayscale survey connects COVID-19 pandemic to new Bitcoin purchases

As Bitcoin (BTC) value rises towards $18,000 and merchants try and safe a brand new all-time excessive, the surge of institutional traders leaping on the Bitcoin bandwagon continues.

This time, institutional and retail traders are each eager to build up Bitcoin and knowledge from crypto derivatives markets reveals institutional traders are driving Bitcoin volumes to new highs.

BTC futures quantity by alternate. Supply: Digital Property Information

In keeping with analysis from Grayscale Investments, a digital asset administration firm that presently holds over $9.eight billion in belongings beneath administration, the coronavirus pandemic could also be a main driver of Bitcoin’s present rally.

In keeping with the corporate’s yearly survey, 83% of all Bitcoin traders began within the final 12 months, a time when COVID-19 infections have been minimal.

38% of all present Bitcoin traders interviewed joined within the final four months and, amongst these, 63% mentioned that the financial disruption attributable to COVID-19 positively influenced their resolution to buy BTC.

Bitcoin is changing into mainstream

Grayscale’s survey additionally reveals that Bitcoin is changing into extra mainstream with most people and investor class. The outlook amongst those who have but to put money into Bitcoin has modified significantly since 2019. In 2020, 55% of the traders interviewed expressed curiosity in buying Bitcoin, a considerable enhance from 36% in 2019.

Practically half of survey members believed that cryptocurrencies might be considered mainstream mediums of alternate by the tip of the last decade.

The pattern of traders being drawn to Bitcoin’s retailer of worth narrative is prone to enhance and it’s potential that mainstream adoption could come prior to most pundits and traders count on. Minimal proof of this comes from a current report from Citibank, during which the writer estimates that Bitcoin value could attain $318,000 by December 2021.