Institutional investors have been perhaps the most important factor driving up the price of bitcoin (BTC) in 2020. Turning his back on traditional markets that stumbled due to the coronavirus outbreak, the institutional investor turned to alternative value assets and, naturally, the BTC currency. Experts argue that these investments will increase.
On October 19, Willy Woo, an analyst on Twitter, wrote in a message that the potential investment of $8.5 trillion could be transferred to the bitcoin market.
Giant institutions and fund managers stand close to Bitcoin
As Cointelegraph often reports, large investors looking to protect themselves against inflation are turning to alternatives such as gold and cryptocurrencies.
Among the major corporate investments made in bitcoin, the name MicroStrategy was first mentioned. The giant company, which made its name with a $425 million investment in BTC, followed by Square, an $81 billion payment initiative, and also signed a $50 million investment in Bitcoin. Stone Ridge, the $10 billion asset manager, also bought 10,000 BTC.
In-chain analyst Willy Woo argued that in light of this information, new institutional investors are on the way, especially in 2021, when many big names will be involved in the ecosystem. A potential investment of $8.5 trillion is on hold, Woo said, recalling that even $1 has not yet come from that potential:
“The possibility of coming from publicly traded companies has always been mentioned at $5 trillion. There is no mention of $8.5 trillion in asset funds. They have zero BTCS. They will need Bitcoin to build the Ideal portfolio.”
If even a small fraction of the $8.5 trillion potential under the control of the portfolio managers Woo mentioned gets into the Bitcoin market, there could be a big rise in prices.
