According to the report, Grayscale had about $5.9 billion in assets under management. Interestingly, this has recorded a massive surge to over $10 billion.
Bitcoin is currently enjoying the rally of its life since the previous market bull run that saw it surge to near $20,000. Just in 2 months, the digital asset has gained about 80% value which saw it fall short of just 4% gain to equal its all-time high of $19,783 after reaching $18,965. Wall Street Journal accessed some of the possible causes for this unexpected Bitcoin bull run that has had a drop-down effect on almost all the leading altcoins.According to the Wall Street Journal, there has been a demand from a new group of investors who seek to make huge profits from the high level of predictions and the recently announced adoptions.Wall Street Journal noted that there has been high interest from both institutional and retail investors. Typical evidence is a surge in trading volume on the leading exchanges and Bitcoin platforms including Square Inc’s Cash App. In 2019, it was noted that customers purchased around $555 million on the platform. This has multiplied to $1.6 billion in the third quarter of 2020 according to the Wall Street Journal. Also, the price surge of Bitcoin has been linked to the recent addition of features on the PayPal Holdings Inc (NASDAQ: PYPL) platform that allows users to purchase Bitcoin directly from their account. Interestingly, this feature is currently available to US customers and would be made accessible to other countries by next year. This can even take the price higher. Impact of the Report by the Wall Street Journal of BitcoinThe Wall Street report dug into the Bitcoin investment life of Grayscale Investments, a private hedge fund. According to the report, Grayscale had about $5.9 billion in assets under management. Interestingly, this has recorded a massive surge to over $10 billion. This has made them one of the main winners of the recent bull run. According to Dan Morehead, the CEO of Pantera Capital, two main factors have driven the Bitcoin price to the current height. The first factor is its known ability of hedging against inflation. The Central Bank has been said to push inflation forcing investors to consider Bitcoin. The report states that the fixed supply of Bitcoin was meant to make its inflation resistant. The other factor is the known mainstream online platforms that promote and facilitate cryptocurrency trading. These have been able to work hand in hand to cause investors to migrate to Bitcoin. Wall Street billionaire Paul Tudor Jones who earlier revealed to have put 1% to 2% of his worth into Bitcoin believes that Bitcoin is a good speculation. Another Wall Street billionaire Stanley Druckenmiller believes that Bitcoin is very similar to gold. However, Bitcoin would outperform gold because of its smaller size and volatility. The last time Bitcoin caught the attention of the mainstream media was around 2017 when it started making waves. Bitcoin price has been said to go even higher by next year due to its last halving event. However, it is still a very risky investment and largely driven by speculation rather than valuation. next Share:
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