The red-hot cryptocurrency hit a fresh record price of $51,715. Bitcoin has gone from a protest against the banking system to something of a "digital gold" that is beginning to catch on with mainstream investors.
An executive at multinational investment bank Goldman Sachs believes an increase in participation from institutional investors is “key” to stabilizing nascent markets such as cryptocurrencies.
Away from the exchanges and OTC desks setting the price of BTC, private and institutional investor interest is growing at pace. Evidence of this can be seen in the growth of crypto venture capital funds, which have raised billions of dollars in 2020.
Institutional investment in bitcoin was hampered by strict investment mandates and regulatory compliance. Now that bitcoin has been formally recognized by many regulators, this issue is far less of an obstacle than it used to be.
"The adoption of bitcoin by institutional investors has only begun, while for gold its adoption by institutional investors is very advanced," JPMorgan said. As conditions normalize, a pickup in mining activity will likely see an increase in the intrinsic value.
Venture capitalists, who look beyond the swings of the price of bitcoin and other cryptocurrencies, appreciate this and are positioning themselves to make investments in the space that will deliver outsized returns for themselves and their limited partners.
Bitcoin and cryptocurrency market chaos this week has caused panic among investors who have been nervously waiting for a sudden move for months. As bitcoin technical data looks bleak and bitcoin bulls advise traders to "buy bitcoin at every chance" they get, the market looks as confused as ever.
Quantum supremacy is what Google quietly announced they have accomplished last week. But what does this have to do with Bitcoin (BTC), cryptocurrencies, and blockchain technologies?
Ripple's XRP has not strayed far from controversy recently, with the company currently embroiled in a row that's seen disgruntled investors accuse it of selling unregistered securities.
Bitcoin and cryptocurrency regulation has been pushed into the limelight over recent weeks, thanks to social media giant Facebook's high profile plans to launch its own potential rival to bitcoin sometime next year.