Grayscale survey connects COVID-19 pandemic to new Bitcoin purchases

As Bitcoin value rises towards $18,000 and merchants try to secure a new all-time high, the surge of institutional investors jumping on the Bitcoin (BTC) bandwagon continues.

This time, institutional and retail traders are each eager to build up Bitcoin, and information from crypto derivatives markets reveals institutional traders are driving Bitcoin volumes to new highs.

BTC futures quantity by change. Supply: Digital Belongings Knowledge

In accordance with analysis from Grayscale Investments, a digital asset administration firm that at the moment holds over $9.eight billion in belongings underneath administration, the coronavirus pandemic could also be a main driver of Bitcoin’s present rally.

In accordance with the corporate’s yearly survey, 83% of all Bitcoin traders started within the final 12 months, a time when COVID-19 infections had been minimal.

38% of all present Bitcoin traders interviewed joined within the final 4 months, and amongst these, 63% say that the financial disruption brought on by COVID-19 positively influenced their resolution to buy BTC.

Bitcoin is turning into mainstream

Grayscale’s survey additionally reveals that Bitcoin is turning into extra mainstream with most people and investor class. The outlook amongst those that have but to spend money on Bitcoin has modified significantly since 2019. In 2020, 55% of the traders interviewed expressed curiosity in buying Bitcoin, a considerable improve from 36% in 2019.

Almost half of the survey individuals imagine that cryptocurrencies shall be considered mainstream mediums of change by the top of the last decade.

The development of traders being drawn to Bitcoin’s store-of-value narrative is more likely to improve, and it’s attainable that mainstream adoption might come before most pundits and traders anticipate. Minimal proof of this comes from a recent report from Citibank, through which the creator estimates that Bitcoin value might attain $318,000 by December 2021.