Institutional FOMO to Drive Bitcoin Price Beyond $20,000 And To Unseen Heights
May 30, 2019 @ 23:04 UTC
Some think it’s too early to call it, but the Bitcoin (BTC) bull run is seemingly back on the table. Over the past two months, the cryptocurrency market has seen the bitcoin price double, rallying from $4,200 to $8,600, the price as of the time of writing this, in a 2017-esque fashion.
With this jaw-dropping move, which caught bearish traders with their pants down, some have questioned who’s behind the move, and what will drive the price forward from here. Evidence is quickly mounting that crypto’s benefactors are institutional players, who have become enticed to invest as the digital asset ecosystem has matured at a breakneck pace.
According to Twitter commentator The Rhythm Trader, the massive uptick in interest in cryptocurrency markets has evidently materialized in Grayscale’s products. The firm’s Bitcoin Trust, which is one of the first publicly tradable BTC products on the market, accumulated 11,236 coins in April alone. With there being 54,000 BTC being mined each month, Grayscale, barring that its inflows haven’t slowed, is buying up 21% of the new Bitcoin supply.
With the recent inflows, Grayscale now has just over $1.9 billion worth of assets under its management, with over 1% of all Bitcoin that will ever be mined in its possession to boot. And the data suggests that the money behind these purchases are, believe it or not, coming from institutions. In a recent thread, Larry Cermak, the director of research, at The Block, pointed out that Grayscale’s products are inherently biased towards institutional clients.