• Bitcoin’s (BTC) trading volume has surpassed $40 billion, and its price has been on a roller coaster.
• Institutional investors are placing substantial bets on Bitcoin, with corporate and government treasuries holding BTC valued at over $30 billion.
• Goldman Sachs‘ recent declaration of support for Bitcoin has increased investor confidence, and history has shown that bull runs in the price of Bitcoin typically last four years.
The digital asset Bitcoin (BTC) is currently enjoying a wild ride, with its trading volume surpassing $40 billion and its price taking an up-and-down roller coaster. The fact that institutional investors are placing substantial bets on Bitcoin must be noted, with corporate and government treasuries holding BTC valued at slightly over $30 billion as of this writing. This is according to the Basel Committee of the Bank for International Settlements (BIS), who estimates that the global banks currently own over $9 billion in cryptocurrency, with Bitcoin and derivatives based on it accounting for 56% of this total.
The increased interest in Bitcoin from institutional investors has been buoyed by news from prominent companies, such as MicroStrategy. Michael Saylor, the co-founder of MicroStrategy, has a strong bullish outlook for Bitcoin, with approximately 130,000 BTC, or 0.62% of the 19 million Bitcoin currently in circulation, owned by his company. Additionally, Goldman Sachs‘ recent declaration of support for Bitcoin has increased investor confidence in the cryptocurrency, with a recent tweet from a single user pointing out that the S&P 500, US Treasury bonds, gold, and other well-known indices were all beaten by Bitcoin in Goldman Sachs‘ ranking of the best-performing assets for 2022.
History has shown that bull runs in the price of Bitcoin typically last four years. The initial step of this cycle is the accumulation of Bitcoin, which is followed by a period of increased trading activity and an uptick in price. This has been seen in the current bull run, with the largest exchanges seeing a surge in trading volume and the price of Bitcoin rising to all-time highs.
The increased institutional interest in Bitcoin may signal that a new wave of investors are entering the market, and this could cause the price of Bitcoin to reach new heights. As the market continues to develop, many traders and investors are unsure of where Bitcoin will go next. However, with the increased institutional interest, it is possible that Bitcoin could reach even higher levels in the years to come.