The adoption rate of cryptocurrency in Nigeria hits new highs and the price of Bitcoin has hit a more than 60% premium.
According to JPMorgan Chase, Bitcoin s short-term success could lie behind Grayscale Investment’s investment portfolios.
Bloomberg strategists, including Nikolas Panigirtzoglou, suggest that Bitcoin might be on the path to losing momentum if it fails to break out above $40,000 USD again. Over the past month, Bitcoin has managed to crack above the $40,000 USD mark, but hasn’t managed to hold the price tag before correcting back to trade around $37,000 USD. However, Bloomberg reports that institutional investment firm Grayscale stands as the entity which could push Bitcoin to return to – and hold – the strong level above its record high of $42,000 USD:
“The flow into the Grayscale Bitcoin Trust would likely need to sustain its $100 million USD per day pace over the coming days and weeks for such a breakout to occur.”
According to the strategists, this breakout level was seen in late November, but with $20,000 USD as the mark instead. According to the report, it was the fresh wave of institutional investment, including massive purchases from Grayscale, that sent Bitcoin to breach the mark and traject it further from there. Since Bitcoin managed to crack above $20,000 USD in December (knocking on the door of – and then breaking – its record high price for the first time since the bull run of 2017), it has gained more than double its value. In just three weeks, the cryptocurrency market has been bagging massive spikes in trading volumes and values, with analysts believing whales and institutions leading the rally.
Grayscale inflows at peak and not looking to slow down
As reported, Grayscale continues to add to its portfolio, buying Bitcoin at a remarkable rate. As it stands, the institution now owns approximately 3% of all Bitcoin in circulation. Not only does this highlight the firm’s investment rate over the past year, but it also shows how much influence the firm could have over the market.