Bitcoin has blasted nearly 40% since the beginning of 2021 as the world’s largest cryptocurrency surged all the way up to $42,000 hitting a new all-time high. Institutional interest in BTC continues to surge further.

It has been a blockbuster beginning for Bitcoin and crypto investors to the year 2021. In an unstoppable journey, Bitcoin (BTC) price climbed all the way close to $42,000 to hit its new all-time high on Friday, January 8. Bitcoin continues its massive bull run further after a phenomenal run in the last year of 2020.So far in 2021, the Bitcoin (BTC) price gains currently stand at nearly 40%. Whereas if we look at the BTC’s monthly price chart, the world’s largest cryptocurrency has gained more than 125% over the last month. With the current uncertain economic scenario, BTC has emerged as a potential inflation hedge and unstoppable force. At a $755 billion market cap, the BTC valuations are at par with some of the biggest global companies like Facebook Inc (NASDAQ: FB) and Tesla Inc (NASDAQ: TSLA).The latest Bitcoin bull run comes on the backdrop of strong institutional participation in the asset class. Almost every big financial institution is seeking exposure to BTC in some or other way. The only reason is that Bitcoin has emerged as a potential alternative to Gold and thus an inflation hedge. Also called Digital Gold, it has another benefit. Bitcoin (BTC) can be liquidated and moved easily in comparison to the physical yellow metal.Institutions Supporting Bitcoin (BTC)Over the last few months, some of the biggest global financial institutions have spoken in favor of Bitcoin. JPMorgan strategists recently said that Bitcoin is more likely to eat into Gold’s market over the years. Moreover, in a recent note to clients, JPMorgan strategists said that Bitcoin can touch $146,000 in the long-term.

“A crowding out of gold as an ‘alternative’ currency implies big upside for Bitcoin over the long term. A convergence in volatilities between Bitcoin and gold is unlikely to happen quickly and is in our mind a multiyear process. This implies that the above-$146,000 theoretical Bitcoin price target should be considered as a long-term target, and thus an unsustainable price target for this year,” the wrote.

Public-listed companies like MicroStrategy Inc (NASDAQ: MSTR), a business intelligence firm, has scooped over 70,000 BTC in 2020. The company’s existing BTC holdings are currently worth $3 billion. In Q4 2020, the London-based Ruffer Investments and One River Digital have also pledged huge investments in Bitcoin.The world’s largest digital asset manager Grayscale has acquired over 600K BTC coins via its Grayscale Bitcoin Trust (GBTC). Grayscale’s major BTC purchase in 2020 comes on the backdrop of rising institutional interest. Speaking to Bloomberg recently, Grayscale‘s newly appointed CEO Michael Sonnenshein said that they are even seeing interest shown by pension funds and endowments, in Bitcoin. Investment giant Guggenheim Partners has also sought 10% exposure to BTC via the Grayscale Bitcoin Trust.Wall Street Veterans Supporting BitcoinApart from institutions several Wall Street veterans have extended support to Bitcoin. Self-made billionaire Stanley Druckenmiller said he’s betting on Bitcoin against depreciating USD. Legendary investor and hedge fund giant Paul Tudor said Bitcoin will assume the role of Gold in coming years. The list of Bitcoin supporters is endless. In an interesting tweet, here’s what Morgan Creek Digital founder Anthony Pompliano had to say.

Bitcoin has a 200%+ compound annual growth rate over the last 9 years.

Even if that slowed by 50% over the next 9 years, Bitcoin will still reach $1 million before 2030.

Everyone is underestimating this beast.

— Pomp ? (@APompliano) January 8, 2021

Speaking to CNBC, mutual fund titan Bill Miller said:

“One of the things that’s interesting about bitcoin is that it gets less risky the higher it goes. That’s the opposite of what happens with most stocks.”

Other news on Bitcoin can be found here.


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