Every time Bitcoin stumbles over another round level, we read in the comments about its imminent demise and the blowing of the bubble. Consider three recent metrics that indicate continued growth.
With the rise in the cost of cryptocurrencies, large companies and investment funds have become interested in mining. Pools began to form to improve the efficiency of crypto mining, and the queue for ASICs stretched for six months.
It would seem that the increased complexity should have hit the miners’ income, but this did not happen due to the growth in the number of transactions and the cost of Bitcoin. Miners on this network earned a record combined revenue of $ 1.6 billion last month.
An increase in mining revenues, on the one hand, will stimulate manufacturing companies to release more efficient devices, and on the other hand, will involve new participants in the crypto mining industry. The latest predictions are provoking investors even more, for example, the CEO of the crypto exchange Kraken believes that by the end of the year Bitcoin will cost as much as one Lamborghini.
The inflow of funds for the
Bitcoin Rally from $ 10,800 to $ 58,800 was provided by new players who bought a quarter of the offer during this period, while the number of hodlers over the past six months has grown fivefold.
Many people consider Bitcoin as a savings instrument – they buy it and immediately withdraw it to cold wallets. And the more the price rises, the stronger the trend.
In many respects, the Bitcoin rally took place thanks to the Fed’s policy and the search by investors for a new non-inflationary “safe haven”. JPMorgan has already admitted that it was wrong about Bitcoin (they called cryptocurrency a scam four years ago) by listing it as a recommended investment vehicle (risk adjusted). Analysts also pointed to the connection between the decline in the value of gold and the growth of Bitcoin, which was formed due to the flow of funds into a more promising instrument. Now it’s Morgan Stanley (NYSE: MS ) turn to recognize cryptocurrency as an investment asset.
On March 31, the bank submitted to the SEC a prospectus for updating 12 investment portfolios, which will include cryptocurrencies through the purchase of a share in the Grayscale Bitcoin Trust and Bitcoin futures. Morgan Stanley did not make official statements about the proposal to invest in cryptocurrencies, but from an “internal note” it became known about such intentions in relation to VIP clients.
These are just two isolated examples, while many insurance, investment and even government pension funds have already added Bitcoin to their investment portfolios. At the moment, the share of their investments is small, but according to JPMorgan’s calculations, if each institutional investor takes 1% of his portfolio to Bitcoin, then the price will rise to $ 280,000.