Bitcoin Hits New All-Time High of $20,300, Becomes the Third Most-Traded Asset Class In The World
Once again Bitcoin has surged above $20,300 levels hitting its new all-time-high. At press time, Bitcoin (BTC) is trading at a price of $20,300 with a market cap of $377.5 billion, as per data on WorldCoinIndex.
After correcting over the last week, Bitcoin (BTC) has made a huge comeback over the weekend and is again testing it moved above the crucial resistance of $20,000. In the past few months, Bitcoin has made several attempts, however, faced strong resistance.
The latest Bitcoin rally comes after institutional money and MassMutual’s $100 million investment last Friday. Interestingly, Bitcoin has recently become the third ‘most crowded trade’ after technology stocks and USD shorting.
In a poll conducted by the Bank of America, near 15% fund managers managing over $500 billion worth of assets reported this news to Bloomberg. Also, Chainalysis chief economist Philip Gladwell notes that the market has been largely driven by North American institutional investors. The exchanges in North America have registered net inflows of Bitcoin (BTC) from traders worldwide.
Seth Ginns, the managing partner at New York-based investment fund CoinFund, said that they have received a lot of interest from hedge funds which is only like to surge the next year in 2021 with broader institutional adoption.
Ginns added that institutional giants are “laying out the groundwork for how you add Bitcoin to your balance sheet, how you should think about Bitcoin as a substitute for cash”.
On the other hand, institutional money continues to flow into Bitcoin from different parts of the world. UK-based public listed investment manager - Ruffer Investment Company Limited - has recently added Bitcoin (BTC) to their portfolio. The company has reportedly invested around 2.5% of its total assets (20.3 billion euros AUM) into Bitcoin.
Although the allocation was done in November, it has been reported recently. The firm noted: “We see this as a small but potent insurance policy against the continuing devaluation of the world's major currencies. Bitcoin diversifies the company's (much larger) investments in gold and inflation-linked bonds, and acts as a hedge to some of the monetary and market risks that we see.”
This further strengthens the prediction by JPMorgan that money from Gold is now coming to Bitcoin (BTC). The JPMorgan strategists recently wrote: “If this medium to longer-term thesis proves right, the price of gold would suffer from a structural headwind over the coming years.”