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Bitcoin Hits $60,000 with Institutional Demand Still on Rise

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by José Oramas · 3 min read
Bitcoin Hits $60,000 with Institutional Demand Still on Rise
Photo: Depositphotos

Bitcoin has reached a new all-time high of $60,310 this Saturday, finally breaking out of its consolidation zone between levels of $56k-$58k.

The recent rise in Bitcoin price came shortly after Michael Saylor, CEO of MicroStrategy Incorporated (NASDAQ: MSTR), announced his company bought 262 additional Bitcoins – approximately $15 million.

Institutional Demand for Bitcoin Still on the Rise

Not only MicroStrategy helped to boost BTC’s price.  Currently, the institutional demand for Bitcoin has not lowered since January. Several institutions in the finance industry are currently seeking ways of embracing BTC for its clients or investing in it as a store of value.

One of the major private banks in the US, Goldman Sachs (NYSE: GS), has seen a greater inflow of clients seeking exposure to Bitcoin as the price increased.  As stated by John Walrond, Chief Financial Officer, the bank is trying to keep on the regulatory side imposed by institutions (like the Security and Exchange Commission) while also trying to meet investors’ demand. The company is also exploring the possibility to open a Bitcoin Exchanged-traded Fund for its investors, as demand continues to increase.

According to Jehan Chu, CEO of Hong Kong-based trading firm Kenetic, the greatest boost for Bitcoin came with Meitu Inc, a Chinese technology company. The firm invested approximately $40 million in Bitcoin and Ethereum, buying at least 15,000 Ether and 379 BTC.

Bitcoin is testing the sound barrier at $60k, and institutional investment continues to build momentum with Chinese internet firm Meitu the latest to execute a Bitcoin treasury strategy. “Further, Beeple’s $69 million NFT record demonstrates the true power of crypto, adding curiosity and fuel to the retail fire. Expect volatility but a landing of $100k levels by Q3,” – stated Chu.

The company also plans to integrate blockchain technology to help develop its business. The firm stated that blockchain is still in the earlier stage. But with time, the adoption of cryptocurrencies and blockchain will become an essential part of many businesses in the finance industry.

The Board believes cryptocurrencies have ample room for appreciation in value and by allocating part of its treasury in cryptocurrencies can also serve as a diversification to holding cash (which is subject to depreciation pressure due to aggressive increases in money supply by central banks globally) in treasury management.

Over $100 Million in Positions Liquidated

As bitcoin rose to $60k, over $100 million in short positions were liquidated, in a manner of minutes, the graph below from Glassnode shows:

https://studio.glassnode.com/metrics?a=BTC&boostMode=False&category=&chartStyle=column&e=aggregated&m=derivatives.FuturesLiquidatedVolumeShortSum&resolution=10m&s=1615458032&u=1615660800"

Photo: Glassnode

Likewise, Bitcoin’s market cap reached 1.12 trillion, competing against Alphabet Inc (NASDAQ: GOOGL) with 1.38 trillion.

Bitcoin News, Cryptocurrency news, Market News, News
José Oramas
Author José Oramas

I'm a finance journalist and copywriter with a keen interest in the fintech field. I have keen on blockchain technology and cryptocurrency and I believe it can reshape the way we see money and financial freedom.

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