Survey Says! Institutional Investors Are Still Bullish On Bitcoin
July 27 2021 - 6:00PM
NEWSBTC
Bitcoin has seen losses in the past day after a rejection north of
the $40,000 resistance. At the time of writing, the first
cryptocurrency by market cap trades at $37,598 with a 5.6% loss in
the 24-hour chart. In the weekly chart, Bitcoin records a 21.1%
profit due to a short squeeze that left traders with short
positions in shambles. On the derivatives sector across all
platforms, analyst Willy Woo recorded $1 billion in liquidations on
July 26th. Most of the liquidations took place on exchange Bybit
with $413 million liquidated, followed by Huobi with $213 million,
OKex with $207, Binance with $111 million. The general sentiment in
the market flipped bullish after the short squeeze which Arcane
Research classified as “one for the history books”. When the price
of Bitcoin jumped from $34,000 to $39,500 was bigger than the one
seen in December 2017 when BTC reached $20,000. Many experts and
traders have flipped bullish. The Fear & Greed Index has gone
up from Extreme Fear and now sits around the Fear area. Despite the
recent bullish price action, others wonder if there are enough
elements that will sustain it. Additional data provided by Arcane
Research indicates that institutional interest, one of Bitcoin’s
main catalyzers, remains high. According to two surveys, one
conducted by Goldman Sachs and the other by Fidelity, there is an
“overall positive sentiment towards crypto” among these
institutions. Bitcoin Still King In The Eyes Of Institutions Over
150 family offices from around the world took part in Goldman
Sachs’ survey. 16% of the respondents said that they are already
invested in Bitcoin and cryptocurrencies, with 24% of these
entities based on the U.S. indicating that they hold a portion of
their assets in cryptocurrencies, Arcane Research said. Similarly,
45% of family offices on a global scale said that they aren’t
invested in cryptocurrencies, but they expressed interest in the
future. Family offices in Asia showed the biggest interest with 68%
claiming that they have plans to invest in Bitcoin and the “digital
asset ecosystem”, as seen below. Most of the entities from the
survey want to invest in cryptocurrencies due to their fear of
inflation and low-interest rates. These are the primary metrics
under their radar and will be of major importance to make the
crypto-investment decision. In addition, 39% of the participants
said that they have not to interest in cryptocurrencies due to
regulatory concerns and because they doubt Bitcoin can be an
efficient store of value. Others revealed a lack of expertise and
familiarity with this asset class. On the other hand, Fidelity
found that there is a “far wider institutional adoption of digital
assets today”. In 2019, 22% of the participants for the same survey
indicated that they held cryptocurrencies, 36% said the same in
2020, and 52% in 2021. 71% said to have plans to invest in
cryptocurrencies and digital assets in the future. Arcane Research
concluded that the results suggest an increase in the institutional
presence in the crypto industry. These major players have driven
Bitcoin from $10,000 to an all-time high at $64,000 and will be key
on further appreciation.
Bitcoin (COIN:BTCUSD)
Historical Stock Chart
From Mar 2024 to Apr 2024
Bitcoin (COIN:BTCUSD)
Historical Stock Chart
From Apr 2023 to Apr 2024