Institutional investors may push the bitcoin price cycle higher, according to Kraken chief development officer Dan Held.
In a lengthy Twitter post, Held tells his 170.000 followers that bitcoin is rapidly attracting institutional investors who could add trillions of dollars to the market.
“Investment institutions manage $100 trillion and now some of them are going into Bitcoin. As institutions enter in bitcoin and buy it, its availability for purchase decreases.”
Held points out that the level of transactions of institutional investors with bitcoin in Coinbase, since the fourth financial quarter of 2019, has increased at an alarming rate, especially in the fourth quarter of 2020.
“A more specific way to measure the rise of institutions is through the submission of Coinbase S1 to the HCMC, which had a chart showing that institutional investors’ trading volume exceeds that of retail.” “Look, the rise of institutions began in the second quarter of 2019 and increased in the fourth quarter of 2020.”
Held notes that as bitcoin’s influence among these major investors gains ground, it will gain considerable staying power, which will change the landscape of bitcoin and the financial market in general.
“This is a significant transition to the bitcoin adoption curve. As it is more widely recognised as a storehouse of value, it is gaining deeper roots in our world.
This bitcoin cycle is different. “Never before has bitcoin had such a strong foundation in a macroeconomic scenario, which underscores exactly why bitcoin is needed, the narrative is unique and flows can easily enter bitcoin.”
The Kraken executive also believes that this level of widespread adoption could trigger an incredibly upward market but also reduce the intensity of future downturns accordingly.