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The Institutional Investor Interest in Bitcoin Is Increasing

04 June 2019 11:14, UTC
Konstantin Rabin

Have you been paying attention to the cryptocurrency markets? Then you might have noticed an ongoing and seemingly strong growth trend for the value of cryptocurrencies and especially, for the value of Bitcoin. The market has been growing bullish over the past few days and weeks, and it seems like the reasons for this are many. Some report that the reason might be the large purchase order that was introduced on the market several months ago, while others talk about how this could be the result of the increasing interest coming from institutional investors.

Although it seems that one does not get in the way of the other and some are saying that both are the same, attributing the large purchase order to a large institutional investor looking to become part of the market. No matter what you think the purchase order was the result of, the bottom line is true 0 the growing value of Bitcoin and the growing market for cryptocurrencies seems to be highly correlated with the increasing interest in the cryptos from the side of institutional investors.

A trend since the boom

The first time around that Bitcoin went through its massive growth in value is the time when the first large scale investors got interested in it as a useful tool for trading and as a good potential investment. Since the time they missed out on the first massive value increase, these large scale investors, venture capitals and institutional investors have been keeping an eye on the cryptocurrency, waiting for any indication or prediction as to the growth of value and a bullish market. And now that Bitcoin is getting bullish again, it is a good confirmation for most of these investors that Bitcoin is indeed a worthy investment opportunity. But while there are those who might be late to start investing, some theorize that there are already those who have managed to invest and make a huge profit off of the market.

At the beginning of 2019, there were several institutions that were looking to start working with Bitcoin. These were either large scale investment funds and venture capitals from Wall Street or elsewhere around the world, governments such as Russia, as well as large banks that wanted to start off offering cryptocurrency services, such as Gazprom Bank. While none of them made a specific confirmation about the beginning of investing into cryptocurrencies already, some believe that these investments have been made. Just judging by the fact that some of the whales on the market today have moved large amounts of Bitcoin around, it might be an indication that we have some new, huge players on the market. And the yare looking to increase their Bitcoin portfolios in an instant, which is what might be driving the market to be as bullish as it currently is.

The second boom (which is happening right as we speak) will be the decisive factor for many institutions, deciding whether to invest in the cryptocurrency or not. And looking at the way how many institutional investors were already looking on Bitcoin very favourably, we might soon be seeing a rush of investment into the currency. After all, when one large scale institution goes in, the others follow so that they do not end up missing out on the financial asset profits. The markets are known for this — invest early, sell early. So while we might be seeing a temporary stall in the value of BTC in the near future, there will be those that are going to be investing again and again.

Innovation and profit

The kind of innovation that BTC represents in technology, meaning blockchain, means to many investors that it will become a growth industry. The coin has been predicted to have a lot of potential for changing how people view administration, security and other aspects of their lives, making them more efficient if used correctly. And when institutions see the potential for innovation, they also see loads of money to be made. So, the interest of institutions not only is not surprising but is also required for the continued survival of BTC and the associated technologies. The interest grows, so does innovation and technology, and so will the profits. A simple scheme that the markets and the investors have been operating on for many years now.

About the author:

Konstantin has been in marketing and advertising since 2011. After leading marketing efforts of one of the largest financial brokerages and an innovative b2b fintech company, he decided to go solo and is now focusing on consulting financial companies on how to drive the best results from their digital marketing efforts. Next to this, Konstantin has been showing interest in the recent regulation of the most competitive industries – finance and iGaming. Stalk him on Quora or connect via LinkedIn to learn more.

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