As the price of Bitcoin (BTC) is on discount. In particular, it moves further away from the all-time high of almost $ 65,000, things begin to look different. The data show that institutions have shown reluctance.
In fact, the demand for the cryptocurrency, as well as the excitement it generated over the past months, seems to have stalled. Apparently, shaken by the same concerns that have pushed Bitcoin prices down.
- The possible environmental damage of Bitcoin.
- The regulatory crackdown on Bitcoin trading and mining in China.
- The possibility of the US Federal Reserve tightening its monetary policy in an effort to combat inflation.
Therefore, it has had an impact on institutions that invested or considered investing in Bitcoin. Well, while some like Tesla seem to be regretting their investment, stopping accepting cryptocurrency payments for their cars. Others such as MicroStrategy have decided not only to maintain, but to redouble their commitment to virtual currency.
In this regard, analyst William Clemente III noted that the demand for Bitcoin by institutional investors had slowed down:
«US institutional demand for BTC seems to have slowed. The coins had been moving at an increasing rate until the end of February. Now the trend has reversed».
Has price volatility driven away institutional investors, or are they still looking to buy Bitcoin?
In this regard, according to the Glassnode report, “institutional demand seems to remain somewhat mediocre”. The latest data could show why Bitcoin has stalled between $ 30,000 and $ 40,000 over the last month.
Lennix Lai, director of financial markets at OKEx, said: “Even though there is a signal in the recent bear market that investors are scared. We don’t see a massive outflow of institutional users».
Jeff Dorman, chief investment officer at Arca Funds said:”We talk to institutional investors every day. They are still allocating funds in record sizes».
Likewise, John Todaro, vice president of research at Needham & Co said: “Some small institutions are still active in moving towards Bitcoin».
Are they preparing to attack?
As is well known, the signs continue to increase that the institutions are preparing to attack: companies such as BlackRock, Goldman Sachs. Also, Morgan Stanley and JPMorgan are on the list of financial institutions that have established Bitcoin funds and services in recent months.
Indeed, on Tuesday, the financial services firm TP ICAP announce which is launching a platform alongside Fidelity Investments and Standard Chartered.
MicroStrategy continues to trust Bitcoin
In short, the company led by Michael Saylor, has invested hundreds of millions of dollars in Bitcoin. Even if the price of the coin is far from its historical maximum.
In fact, one of the companies with the highest profits has managed to accumulate thanks to the bull rally of Bitcoin. When the other traditional companies seem to have not yet reacted.
By way of closure, Bitcoin has revolutionized the financial world. Not just companies and investors, but even countries, what do you think about it? Let it know in the comment box.
I say goodbye with this phrase of Tim Draper: “Accept Bitcoin as national currency and businesses will come alone».