In late trading Wednesday, Bitcoin was flirting with $57,000 and higher by more than 11% over the past week. Investor demand for the digital asset remains robust.
Bitcoin, the largest digital currency by market value, continues notching record highs on what feels like a daily basis. Chances are institutional investors are playing a vital role in this rally because confirmation abounds that Bitcoin is luring more and more big-name participants.
See also: Canada Green Lights the Country’s Second Crypto ETF
Other data points confirm investors want more Bitcoin.
“Goldman Sachs chief operating officer and bank president John Waldron on Wednesday said he has seen an increase in interest from his clients when it comes to investing in bitcoin,” reports Business Insider. “The executive also said Goldman is discussing with regulators how banks can deal with digital assets moving forward.”
Banks Now Betting on Bitcoin
Supply of Bitcoin is dwindling because institutional investors are piling into the market, and many retail investors are holding onto the cryptocurrency for longer periods of time.
Asia is seeing particular interest in rising institutional investment. China is working on a state-backed cryptocurrency offering with the help of major private industry players.
“Big names from BNY Mellon to Anthony Scaramucci’s Sky Bridge Capital, which has pumped almost $500m into bitcoin over the past five months, are adopting the cryptocurrency. Furthermore, Morgan Stanley is weighing up whether to bet on bitcoin and JP Morgan will look at offering bitcoin trading if there is client demand. These banks and large companies are interested in bitcoin for good reason – aside from the hype,” notes Global Data thematic analyst Danyaal Rashid.
Amid low global interest rates and central bank debasement of fiat currencies, Bitcoin is becoming a go-to asset for some high-level investors and companies.
“The rise of retail traders accelerated in 2020 as more people stayed at home due to pandemic-related restrictions, which coincided with the increasing popularity of commission-free investing and easy-to-use mobile trading platforms such as Robinhood,” continues Business Insider. “Goldman Sachs on March 1 that it had restarted its cryptocurrency trading desk amid a boom in bitcoin. The bank also announced it will start dealing bitcoin futures and non-deliverable forwards to keep up with the rapidly evolving digital assets sector.”
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