Bitcoin succeeded in transforming many people into “believers in cryptocurrency” in 2020. This year, as the scene of an incredible series of events, Bitcoin price confirmed that the leading cryptocurrency is permanent. However, Bitcoin has already approached $ 18,000 or $ 20,000 in the past. So why is this increase so important?
“… This acceleration in price was largely due to real gains and recognition we didn’t see in 2017,” said Catherine Coley, CEO of Binance US. Coley says that in 2017, BTC gained 90% from $ 6,775 to $ 19,666 in 34 days, but this was due to a spike. Bitcoin did not encounter any resistance, although it had not seen this value before.
Institutional Investors’ Interest in Bitcoin
Three years later, there have been major changes in the crypto ecosystem. Governments around the world are still trying to make sense of this situation. In a panel interview with Yahoo Finance, Coley said corporate treasuries are adding Bitcoin to their balance sheets and encountering macro investors interested in Bitcoin.
In just the last few months, we have witnessed many famous investors getting interested in Bitcoin. Mike Novogratz’s Galaxy Digital has announced that he will set up a new Bitcoin fund in Canada, and giants like Square have said they have Bitcoin in their reserves.
Billionaire Investors Turn to Bitcoin to Avoid Risk
According to some, this Bitcoin rally has some unique features. One of them is that the people leading the rally are not speculators. Like Bill Miller and Paul Tudor Jones, Wall Street legends are turning to Bitcoin, which they see as a digital alternative to gold because they don’t want to risk devaluation and inflation.
Regulators, especially in the USA, follow this situation closely, as bitcoin is established as a valuable asset in the market and among investors. There are some hurdles facing cryptocurrency businesses. According to reports, 56 lawsuits were filed by the SEC under the Jay Clayton Presidency against crypto-related firms.