A new series of large, high profile investments in Bitcoin has helped in making large price movements in the market. Big investors and traditional financial institutions across the globe are moving towards Bitcoin, creating a larger chunk of institutional investments in the crypto space.
Bitcoin makes big movements
In 2017, Bitcoin touched the $20,000 mark only to fall flat on its nose in the months to come. In 2021, the market is moving in the other direction. After touching $20,000 Bitcoin stopped for a while, only to go all the way up to $23,000.
One of the newest entrants into the Bitcoin bandwagon is Ruffer, LLP. The London-based investment firm announced yesterday that it has allocated 2.5% of its funds to Bitcoin. American Express also announced that its investment arm- American Express Ventures, has poured in additional funding in FalconX, a crypto trading platform designed for institutional investors. The company had previously invested $17 million in the firm.
Eric Peters, the CEO of One River Asset Management also dived into Bitcoin. His firm One River Digital made a $600 million investment in cryptocurrencies this year, eventually moving up to $1 billion. He was buying Bitcoin secretly till November which could help him keep the cost of acquisition low and not alert his peers.
He sends a private weekly investment newsletter to a group of investors, titled Weekend Notes. This group of investors has about $1 trillion in assets in total.
Bitcoin trading volumes rise
In the past 24 hours, Bitcoin volumes went past the roof. Data provider Nomics said that this was not bot trading but transparent volume which can be connected to verified money movements. The firm said that the verifiable trading activity doubled in the market. The global market cap rose by 14% to $650 billion. XRP, Hex, Litecoin, and Stellar.
Crypto trading is becoming an attractive investment option for institutional investors because of multiple factors. The low-interest rates in developing incomes, negative interest rates in bonds, and increasing money supply that devalued fiat which could cause inflation is incentivizing investors to look for greener pastures elsewhere.