Experts see institutions as driving force for Bitcoin

Experts see institutions as driving force for Bitcoin – Are the Altcoins following suit?

Two crypto experts see institutional investors as the driving force for the crypto market, which could also carry some Altcoins upwards.

The analysts point to the increased interest of Bitcoin Up financial institutions and listed companies in Bitcoin (BTC) as the driving force behind the current upswing of the crypto currency.

„The main reason for Bitcoin’s steady rise is the increased interest and aggressive buying by institutions,“ notes Nick Cote of the crypto trading platform Hxro Labs. And he continues: „Many of these investors are using Grayscale for this purpose“.

In fact, the Grayscale Bitcoin fund has been very active recently

For example, the asset management company had expanded its Bitcoin fund to more than 500,000 BTC at the beginning of the month. Institutional investors are using this route to avoid having to buy and hold the crypto currency themselves. The purchases of the investment fund thus show that more and more institutions are investing in Bitcoin.

As Cote adds, large companies such as Square and Microstrategy have now also „included Bitcoin on their books as a hedge against the threat of inflation and the poor monetary policy of central banks“. He sees this in turn as a „positive feedback“ for the crypto market:

„There will always be feedback, but as long as the institutions believe in the narrative of Bitcoin as a store of value and a hedge against inflation, there will be positive feedback“.

Nicholas Pelecanos of the crypto project NEM shares this view, because, as he believes, Bitcoin’s fundamentals are stronger now than ever before. He points to the shortage caused by the halving in March, increased institutional interest and „several listed companies that have invested up to 10% of their capital“.

But Pelecanos is not only optimistic about Bitcoin, but also about the „alternative crypto-currencies“ or Altcoins. In particular, he points to their growth potential: „Bitcoin is almost back at its record high, but what is really interesting is that most Altcoins are still 50% behind their record highs“.

However, the expert limits his confidence a bit, as many Altcoins have not yet been properly adopted. So he says:

„Some Altcoins are part of crypto-projects that are no longer running, while others have developed steadily, both technically and in terms of adoption“.

A further boost for the crypto market could come from the crypto-miners, because according to Glassnode CTO Rafael Schultze-Kraft, the miners have accumulated an additional 10,000 BTC since March.