Institutional Demand For Bitcoin Surges Rapidly
The crypto market looks good today with most coins trading in the green and Bitcoin is no exception.
At the moment of writing this article, the king coin is trading at $9,499.98.
Ethereum managed to surge by more than 7% following an important announcement about the Etehreum 2.0 upgrade launch which will reportedly take place on August 4th.
Institutional demand for Bitcoin is on the rise
Since back in early 2020, the institutional demand for Bitcoin has been growing rapidly. In the second quarter of 2020, according to the latest data, it seems that the appetite for Bitcoin spiked a lot.
This is extremely important for the mass adoption of digital assets.
This has been one of the most important goals that the crypto industry has set and there have been a lot of moves taking place towards the achievement of this goal.
Cointelegraph notes that according to crypto asset fund Grayscale, its products recorded an inflow of $1.4 billion in capital.
The company became so popular especially due to the Grayscale Bitcoin Trust, which allows institutions in the United States to gain exposure to Bitcoin via a publicly-traded over-the-counter stock.
Demand for Bitcoin spiked from March to June
The online publication mentioned above noted that the demand for Bitcoin surged steadily at the beginning of this year during the first three months, and then it managed to surge rapidly from March to June.
“One possible explanation for the sudden increase in attraction toward Bitcoin is its crash in early March when Bitcoin’s price briefly dropped below $3,600 on BitMEX,” the online publication mentioned above notes.
Over $1 billion worth of futures contracts were liquidated, but in the 72 hours that followed, the volumes in retail markets surged a lot, especially on platforms like Coinbase. We recommend that you take a look at the original article in order to learn more info.
CoinMarketCap is a website that provides cryptocurrency market cap rankings, charts, and more. It was purchased by Binance for $400M in 2020.
Coinbase is a digital currency exchange headquartered in San Francisco, California.
Andreas Townsend Author
I am a technical writer, author and blogger since 2005. An industry watcher that stays on top of the latest features, extremely passionate about finance news and everything related to crypto.