Bitcoin not only breaks the most important psychological level of $20,000 but also claims $22,000. In a period of just 24-hours, Bitcoin witnessed an addition of $3000 in its value.
The year 2020 is near to end, and the price is continued to witness new highs thanks to institutional clients who support the top digital asset in attaining new all-time high levels.
Support of Institutional Investors
It is still unknown that to which level the price of Bitcoin would reach as there is a high inflow of institutional money in Bitcoin. When the price tag reached $20,000, users of various cryptocurrency exchanges faced issues while logging with the sites. They faced problems in entering the exchanges due to a heavy rush of traders and investors who were busy trading the world’s leading digital currency. After claiming $21,000, the bulls did not stop but continued to push the price in an upward direction. After an injection of $3000 in 24-hours, the value finally reached $22,000 over crypto trading sites. As a result of the price hike, the total market cap of the flagship cryptocurrency jumped from $360 billion to $409 billion.
In the current status, the Stock-to-flow model is implemented successfully as the price goes upward due to a shortage of BTC supply. In all fundamental factors, Bitcoin halving is one of the major things that are pumping the price value high. However, the speculation of the Stock-to-flow model of $30,000 by the end of 2020 seems impossible but it is too early to say about this.
According to major figures in the crypto space, institutional money is behind the bull run. Ove recent months, a lot of institutional investors announced to purchase Bitcoin in millions of dollars. For instance, after the purchase of more than $400 million in Bitcoin, giant investment firm MicroStrategy is now planning to add more than $400 million in the leading digital currency. MicroStrategy is the major reason why other investment companies join the crypto industry.
Insurance firms have started to take interest in the crypto space as the US-based MassMutual purchased Bitcoin worth $100 million.
Recently, another asset manager unveiled its investment over the top digital asset. “The exposure to Bitcoin is currently equivalent to around 2.5% of the portfolio. We see this as a small but potent insurance policy against the continuing devaluation of the world’s major currencies,” it added.
