Intense Interest in Bitcoin from Institutional Investors

In a recently announced data, 6 million
bitcoins
are stored in a wallet with signatures supported. This amount corresponds to 1/3 of the existing bitcoin supply. When it is evaluated that signature-supported wallets are preferred by institutional firms, we can see that institutional companies are important players in the bitcoin market.

A study by Fidelity Investments shows that 36% of institutions in the US and Europe invest in bitcoin. When we examine the details of the research, it is seen that the interest in bitcoin is 45% higher in Europe-based institutions, while this rate is 27% in US-based institutions. However, when we consider that the rate of those who invested in bitcoin last year among US-based companies was 22%, we can say that the interest in crypto coins has increased on the US side. 

Due to the damage to the economies of the country, especially with the Covid-19 process, various steps have been taken by the country’s central banks to loosen financial conditions. At the very beginning of these steps was to reduce interest rates. These rate cuts have led to negative interest rates on bonds of many countries around the world. Institutions that did not want to be penalized for their investments with negative interest rates turned to alternative investment vehicles. At this point, the prominent investment instrument was bitcoin. So much so that we have seen that even individual investors prefer to evaluate this aid in bitcoin for people who receive the $ 1200 aid check announced by the US government due to Covid-19. People who chose to invest in this way made a profit of 40%. 

The fact that institutional companies turn to bitcoin investments will mean an increase in bitcoin reliability. Considering that the most important element for the investor is trust, we can evaluate this situation as a positive issue for the future for bitcoin.