The 4 Major Reasons Why Institutional Investors Continue To Buy Bitcoin on a Massive ScaleBitcoin has passed the point of no return in 2020. Image: Shutterstock
Begun in early October 2020, the Bitcoin Bull Run that we are currently experiencing is driven by institutional investors. You have probably read about it somewhere before. So I’m not giving you any scoops here.
This 2020 Bull Run, which has pushed the Bitcoin price from $10.5K to over $41K in just a few weeks, has nothing to do with the 2017 Bull Run.
At the time, it was retail investors who were on the move. They had come en masse to buy Bitcoin. A FOMO effect had developed that allowed the Bitcoin price to come up against the $20K mark. The problem with these retail investors was that they did not understand the why of Bitcoin, or even that its price volatility is a feature, not a bug.
These retail investors are more inclined to let their emotions override their sense of logical reasoning.
Under these conditions, as soon as the Bitcoin price experienced its first big correction, the vast majority started selling at a loss the BTC they bought in FOMO mode. This caused a prolonged bear market that lasted throughout 2018 and part of 2019.
Bitcoin hit a low price of $3.2K at the end of 2018.
While the speculative bubble that had formed at the time around the price of Bitcoin did burst, Bitcoin resumed its revolution. Bitcoin is not a speculative bubble, but the needle that will burst the bubble of the current system where the U.S. dollar reigns supreme.
However, the distrust in the U.S. dollar has been growing for months. The thousands of billions of dollars printed out of thin air by the Fed and the other central banks over the last few months have left their mark on investors’ mindset. Everyone is looking for ways to hedge against the slow but sure collapse of the current system.
This is where Bitcoin comes in for institutional investors...