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Report: Bitcoin's "sweet spot" a major reason for uptick in investment

source-logo  chepicap.com 15 June 2019 17:00, UTC

Bitcoin has been performing admirably lately as it looks to retest its 2019 high of $9,000. Grayscale Investments has recently released a report which looks at cryptocurrency investments and developments during Q1 2019.

The report begins by stating that Barry Silbert’s Grayscale Investments has $1.2 billion in Assets Under Management (AUM), noting a 42% increase in product inflows quarter-over-quarter, from $30.1 million in Q4 2018 to $42.7 million in Q1 2019.

The report then discusses Bitcoin’s investment popularity, stating 99% of all Q1 inflows were into Grayscale's Bitcoin Trust. One possible reason for this is Bitcoin’s newfound “sweet spot.” The report states that early signs are showing we may be entering a new “risk-on” attitude where investors are diving not only into Bitcoin but other cryptocurrencies as well.

Investors may also be spurred on by Bitcoin’s upcoming halving, scheduled for May 2020. The report reads:

“Historically, block-reward halvings have helped drive above average returns for Bitcoin in the years that follow. Some investors may be questioning if this event is fully priced into the market yet, and building long positions as a result.

Citing previous examples in November 2012, November 2013, July 2016 and July 2017, the report notes that after each halving event, Bitcoin’s price sees notable gains. 

chepicap.com