Bitcoin

Grayscale Survey Links COVID-19 Pandemic To New Bitcoin Purchases

As the price of Bitcoin climbs to $ 18,000 and traders try to hit a new all-time high, The number of institutional investors choosing Bitcoin (BTC) continues to grow.

On this occasion, institutional and private investors are interested in buying Bitcoin, Data from cryptocurrency derivatives markets shows institutional investors are pushing bitcoin volume to new highs.

Bitcoin futures volume after conversion. Source: Digital Assets Data

According to an investigation by Grayscale investment, a digital asset management company that currently manages more than $ 9.8 billion in assets, The coronavirus pandemic could be the main driver behind Bitcoin’s current rally.

Grayscale Survey Links COVID-19 Pandemic To New Bitcoin Purchases
Grayscale Survey Links COVID-19 Pandemic To New Bitcoin Purchases

According to the company’s annual survey 83% of all Bitcoin investors started buying in the past 12 months. a time when COVID-19 cases were minimal.

38% of all current Bitcoin investors have joined in the past four months, and 63% say the economic disruption caused by COVID-19 has had a positive impact on their decision to buy BTC.

Bitcoin is becoming more and more mainstream

The grayscale survey also shows that Bitcoin is becoming more and more mainstream with the public and the investor class. The outlook for those who have not yet invested in Bitcoin has changed dramatically since mid-2019. In 2020 55% of the investors surveyed showed interest in buying Bitcoin, a significant increase from 36% in 2019.

Almost half of the respondents believe so lCryptocurrencies will be seen as the traditional medium of exchange of value by the end of the decade.

The current trend is likely to pick up as investors are drawn to the history of Bitcoin as a store of value. And mass adoption can happen sooner than most experts and investors expect. A small piece of evidence of this is a recent Citibank report in which the author estimates that the price of Bitcoin could reach $ 318,000 by December 2021.

Will Bitcoin Not Be the Center of Attention Once COVID-19 Wears Off?

The question of How the price of Bitcoin will react to COVID-19 eradication is a question that reverberates on the minds of some investors. According to Jonathan Hobbs, the author of The crypto portfolio and former digital assets fund manager, The effects of the pandemic will be felt long after the disease is controlled. Hobbs said to Cointelegraph:

“Covid-19 was the match that lit the flame of institutional adoption. But the firewood accumulated long before. Now that the fire is burning, it will take a lot of water to put it out. When the world is finally free of covid 19 the economy will continue to be in debt, and central banks will continue to print money to try to increase that debt, as it has done since the financial crisis of 2008. This means that the institutional history of Bitcoin is one safe haven against inflation is likely to be long after the pandemic is over. “

Obviously, the enormous economic impetus and growing monetary policy as a result of the negative effects of the coronavirus have changed the economic landscape in the near future.

While some analysts may overestimate how the coronavirus pandemic affected the 2020 Bitcoin rally, it is clear that it played a role in accelerating investor interest in cryptocurrencies.

One of the main positive factors noted by investors is Bitcoin’s low barrier to entry and its ability to appreciate in volatility in traditional markets. These factors are likely to remain even after the pandemic ends.

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