For the past two years, technology analyst Kevin Rooke has been monitoring public companies’ Bitcoin (BTC) shares. Public companies currently keep over 3.6 billion dollars worth of BTC, according to Rooke.
In 2019, on their accounts, public corporations have just 20,000 BTC. In 12 months, this number has risen to 105,837 BTC. Said Rooke:
“Last year, public companies held fewer than 20,000 BTC on their balance sheets. Today, 19 public companies hold 105,837 BTC on their balance sheets, valued at over $3.6 billion.”
Today, with 70,784 BTC, MicroStrategy is the largest Bitcoin holder, and GalaxyDigital Holdings, with over 16,400 BTC, is a distant second. Square, meanwhile, with approximately 4,700 BTC, is the largest corporation among public company investors by market capitalization.
Why is Bitcoin’s institutional demand soaring?
Public corporations alone accumulated about BTC 85,000 in one year, which represents $2.67 billion.
As seen by the surging trading volume on Grayscale and CME, this pattern is representative of the high rising institutional market for Bitcoin.
The products of Grayscale and the demand for CME Bitcoin futures all mainly appeal to institutions, and since mid-2020 they have seen a significant rise in price.
Due to the hopes that BTC will potentially develop into an existing alternative to gold, institutions are increasing their exposure to Bitcoin.
Investors and companies are finding ways to hedge their assets and investments despite rising uncertainty and liquidity injections from central banks. Cameron Winklevoss declared:
“Inflation robs you of your life’s work. The Argentine peso has lost 50% of its value against USD in the past 3 years. And that’s saying a lot given the current state of the U.S. dollar. No wonder search interest in #Bitcoin is going through the roof.”
It will certainly create a more favorable climate for Bitcoin and gold to rally if the Joe Biden administration actively implements more stimulus and efforts to alleviate financial conditions.
What analysts predict in the near term at BTC
In the near future, analysts are marginally skeptical, considering the persuasive macro environment.
Still, in the broader context, macro experts say they’re leaning towards Bitcoin’s bullish scenario. An economist and Bitcoin investor, Alex Krüger, said:
“$BTC is stuck in a range within a range: 29K-35K. It can break either way. The key reason I lean bullish is interest rates. Exuberance has rinsed off the system dramatically, as reflected in falling rates. This is a bull market, and traders are now bearish. That’s bullish.”
Owing to brightening investor mood, there are also hopes that more institutions will purchase Bitcoin in the coming weeks. The options industry has reset on top of this, with the futures market being less crowded. It was further noted by the trader:
“Funding is either flat or negative. Perpetuals are trading below spot. The perp-spot basis has not been negative for this long since pre Nov elections, And the annualized quarterly basis has dropped from 25%-28% a week ago to 7-10% now. All sings of a healthy cool-down.”
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