The Bitcoin Boom is Different from 2017, Analyst Claims
Bitcoin price has rallied almost 50% in the last month alone as several institutional investors have started moving their money towards digital assets.
Twitter CEO Jack Dorsey said they want to maintain more than 1% of their total assets in Bitcoin. Jack Dorsey has bought around 4,709 Bitcoin at the end of the June quarter. The price of Bitcoin doubled since Jack Dorsey’s investments.
Similarly, the price of Bitcoin also experienced a significant boost since PayPal announced to permit its users to buy, sell, and hold bitcoin in PayPal wallets. Bitcoin is also now accepted as a valid payment method at PayPal’s 26 million merchants.
Mike Novogratz says the rally is different from 2017
Billionaire investor and the Galaxy Digital CEO Mike Novogratz says the Bitcoin price rally is unlikely to see a crash as it had experienced in 2018 after hitting an all-time high of $20K level.
The investor claim that the 2018 crash was driven by retail investors, but institutional investors are backing the rally this time. He expects Bitcoin price to reach $60,000 by the end of 2021 as more institutional investors are likely to buy digital coins.
“We’re seeing institutions buy into this, we’re seeing high net worth families buy into this, across the board you’re getting institutional adoption,”
the Galaxy Digital CEO said
“People are going to Bitcoin because there is 20 million Bitcoin that will ever be mined, there’s complete scarcity in it. People believe it’s a store of value. It’s a social construct, and you can’t change that,”
Bitcoin price is likely to sustain gains
The largest digital coin has hit three years high of $18000 on Wednesday before falling back to the $17800 levels. The price of the coin is likely to sustain gains as institutional investors are looking to hold investments for the long-term. A higher adoption rate and acceptance at millions of merchants would promote the use of digital currency.