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Bitcoin

Even with Bitcoin consolidation, Wall Street continues to buy

Bitcoin continues to be accumulated by Grayscale, a digital asset fund manager.

Kevin Rooke, a technology analyst, noted that the “Grayscale Bitcoin Trust just added 12,319 BTC to GBTC in a single day. That’s more than 11,512 BTC that they added over the past week, when Bitcoin broke its ATH. “

This shows a clear institutional demand for Bitcoin, despite the recent consolidation.

Although Grayscale continues to buy massively, that flow may slow down for now. As has been widely reported, the company has temporarily suspended new investments in six of its funds.

This is only temporary and is probably related, firstly, to the holiday season and, secondly, to a major unblocking of private funds from the funds, which can now be sold on the secondary market.

Some think that this could mean that there will be limited inflows in Bitcoin and Ethereum in the coming weeks, but this appears to be only a temporary setback for the market. In addition, other institutional participants are accumulating the main cryptocurrencies through other vehicles.

Grayscale is not the only one

This recent confirmation of a major purchase from Grayscale occurs just when MicroStrategy, the American business services company, confirms a major Bitcoin purchase:

“TYSONS CORNER, Va .– (BUSINESS WIRE) –Dec. 21, 2020 – MicroStrategy® Incorporated (Nasdaq: MSTR) (the “Company”), the largest publicly traded independent business intelligence company, today announced that it has purchased an additional approximately 29,646 bitcoins for approximately $ 650 million in cash from according to its Treasury Reserve Policy, at an average price of approximately $ 21,925 per bitcoin, including fees and expenses. “

The company now holds “a total of approximately 70,470 bitcoins, which were purchased at an aggregate purchase price of approximately $ 1.125 billion and an average purchase price of approximately $ 15,964 per bitcoin, including fees and expenses”.

MicroStrategy sees the leading cryptocurrency as a superior investment than money. Commenting on the recent investment, Microstrategy’s Michael Saylor said:

“The acquisition of additional bitcoins announced today reaffirms our belief that bitcoin, as the most widely adopted cryptocurrency in the world, is a reliable store of value. We believe that the proactive management of our balance sheet, combined with the improvement in the company’s revenue and profitability performance, were significant factors in the recent appreciation of our share price ”.

Those corporations and funds that invest in Bitcoin in the long run are likely to restrict the amount of BTC in the market, raising prices over time, assuming the demand for cryptocurrencies will increase.

Source: Bitcoinist

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