Since late last year, Bitcoin has gained wider acceptance worldwide after influential individuals and top institutions have joined the community. Many of the beneficiaries of the stimulus package are going to invest the money in Bitcoin. Mike Novogratz made this assertion of GalaxyInvestment Partners.
Further, he said that Bitcoin, which is the benchmark for other cryptocurrencies, had been adopted as an acceptable asset class since last year, thanks to prominent individuals and institutions’ entrance into the crypto community. The leading digital asset has continued to maintain its bullish momentum since last week. Last weekend, Bitcoin further broke its recent all-time high of $60,000, until it later fell shed $7,000 yesterday.
Retail traders triggered last week’s surge
In his remarks about the recent volatility trailing Bitcoin, Novogratz noted that what is happening now is likely a 10% retracement in price before the digital asset finds a new level. Novogratz, however, paid much attention to the uptrend momentum and the recent all-time highs, noting that the sudden surge in the price last weekend was spurred by retail and not institutional investors.
“It was the retail investors who were excited about the market that brought about the surge.” Novogratz, a former hedge fund manager, affirmed that a large percentage of the upcoming stimulus package would find its way into Bitcoin. Many American youths are going to invest in Bitcoin, the Bitcoin investor claimed.
Additional data released by CryptoQuant, a firm specializing in crypto analytics, buttress Novogratz’s position that retail investors caused the last weekend’s Bitcoin’s record break. CryptoQuaint CEO added that Coinbase Index that studies institution’s trades didn’t reveal any significant amount of trade made by institutions; stablecoins’ traders sparked the move.
Bitcoin is now worthy to be seen as an asset
Novogratz further explained how Bitcoin has now been perceived worldwide since last year after influential entities such as MicroStrategy, Tesla, and other individuals and famous corporate entities joined the Bitcoin investors’ league. He noted that since January, there had been a rapid change of public perception about Bitcoin, making Bitcoin a widely accepted asset class.
The issue is no more when and how; it has been established that Bitcoin has become an asset. The crypto industry has evolved to be an asset. Banks are now participating in the crypto market. Tech companies and portfolios are also embracing cryptocurrencies as an evolving asset class. “If investors are not bullish, they are bearish against Bitcoin,” Novogratz stated. Virtually every day, crypto news articles are making the headlines. The question now is, “How should institutional investors respond to this development?”
Major participants in the crypto industry have disagreed on whether cryptocurrencies, especially Bitcoin, should be regarded as an asset or not. Meanwhile, institutional investors are concerned about the misinformation surrounding the nature of Bitcoin and the crypto space in general. Some analysts note that when io individuals now save a certain amount of their pensions in cryptocurrencies, this is a clear indication that they have considered it as an asset class.