Alternative Investments/Digital Assets: Bitcoin Shoots Past $15,000

Institutions have piled into bitcoin, triggering its current rally.

Bitcoin in recent months has got a lot of love from corporates, institutions, and retail investors. It is currently trading at $15,500.

Corporate investments and PayPal

According to Decrypt, bitcoin (BTC) has been on a tear because companies such as Microstrategy (NASDAQ: MSTR) and Square (NYSE: SQ) made catalytic investments of millions of dollars in the cryptocurrency.

Then PayPal (NASDAQ: PYPL) set the cat among the bearish BTC pigeons by announcing features that allowed users to trade in Bitcoin, as well as Ethereum, Litecoin, and Bitcoin Cash. That announcement really took the BTC rally into another league.

According to Marketwatch, the performance of BTC is as follows:

  • 5 Day +13.79%
  • 1 Month +40.60%
  • 3 Month +34.05%
  • YTD +116.49%
  • 1 Year +75.09%

Grayscale Investments

Grayscale Investments, the world’s largest manager of digital assets, said in its Q3 report that its Bitcoin Trust received inflows of $719.3 million during the quarter. Year to date the assets of this trust swelled from $ 1.9 billion to $ 4.8 billion.

Importantly, Grayscale revealed that its bitcoin inflows were equivalent to about 77% of all the bitcoin mined in that period, up from about 70% in the second quarter.

It also said that as much as 81% of its inflows were accounted for by institutions.

Talking of quarterly numbers, Square said that almost 80% of its Q3 Cash App revenue came from BTC. It said that it generated $1.63 billion in Bitcoin revenue and $32 million of Bitcoin gross profit during the third quarter of 2020 from its Cash App.

According to The Bitcoinist, which quoted Ikigai Asset Management’s Hans Hague, Square and Grayscale alone have accumulated $2.3 billion worth of BTC in the past quarter.

On the other hand, supplies from BTC miners were about $1 billion in value in the third quarter.

It appears that the BTC demand-supply scale is tipping in favor of the bulls.

Meanwhile, billionaire Mike Novogratz commented recently: “We’re in a bull market in #bitcoin. The Fed is going to continue to print. Less fiscal, more Fed, good for crypto. We have crossed the Rubicon in its adoption.”

Related Story:   Bitcoin Sceptic Jeffrey Gundlach Now Says It Is a Dollar Hedge                                                

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Latest Alternative Investment News
Artificial Intelligence: AMD Takes On Rivals In The AI Chip Sweepstakes
December 7, 2023     Artificial Intelligence, News

Chipmaker AMD (NASDAQ: AMD) has unveiled a range of innovative AI solutions spanning from data centers to personal computers. The AMD Instinct MI300 Series features data center AI accelerators, while…
Digital Assets: Robinhood Debuts Crypto Trading On Its App In The EU
December 7, 2023     Digital Assets, FinTech, News

Robinhood (NASDAQ: HOOD) has launched its Crypto app in the European Union (EU), allowing eligible customers to engage in crypto trading with the added incentive of earning Bitcoin rewards. Customers…
FinTech: Samsung Electronics Ties With Mastercard’s Wallet Express
December 7, 2023     FinTech, News

Samsung Electronics (KRX: 005930) and Mastercard (NYSE: MA) have partnered to launch the Wallet Express program, offering banks and card issuers a cost-effective way to expand digital wallet offerings. Through…
Venture Capital: Revaia, Europe’s Biggest Female-Led VC Firm, Racks Up $160M For Second Fund
December 7, 2023     ESG and Sustainability, News, Venture Capital

Revaia, Europe’s largest female-founded venture capital firm, has successfully raised €150 million ($160 million) for its second fund, Revaia Growth II. The funding was secured from sovereign wealth funds, family…