Institutional capital has started to enter bitcoin en masse in 2020, a trend highlighted by Messari analyst Ryan Watkins.
He presented data showing that for the first time in the history of the cryptosphere, BTC began to be seen as a macroeconomic asset. While in previous years bitcoin was mainly of interest to retail players, this year, for the first time, institutional demand for the instrument has increased.
Watkins emphasised that it had been a very challenging year. Global Bitcoin Loophole markets collapsed in March. In the history of the cryptosphere, the most tragic day was the so-called Black Thursday, March 12. On that day, BTC plummeted to its lowest level in 12 months.
However, in April, the cryptocurrency began to strengthen again. The key driver for its growth was the activation of the printing press in the US and the EU.
In May, halving (reducing miners‘ rewards) was an important development. In the same month, a major investor, Paul Tudor Jones, confirmed that he was holding some of his capital in bitcoin. According to the financier, BTC can be compared to gold, which is not subject to inflation.
This was followed by news of MicroStrategy and the Ruffer Investment fund entering the cryptosphere. Another major financier Stanley Druckenmiller has also admitted to owning bitcoin.
Ryan Utkins on Twitter dedicated a separate post to each month of 2020, listing key events in the history of BTC. He specifically focused on a review of Messari’s research on the role of institutional capital.
The researcher predicts that in 2021 big players will be more active in the largest digital currency, which will have a positive impact on its value.