Bitcoin Rally of 2020 was fueled by educated institutional investments, improving blockchain infrastructure, and ofcourse the Pandemic. The entry of institutional investors like Paypal, Microstrategy, Facebook in digital assets investment, and blockchain technology were some major highlights of the year. Yet another milestone was achieved by the crypto community as an announcement was made by S&P Dow Jones Indices to launch cryptocurrency indices in 2021. Rising interests of institutional investors whether in cryptocurrency or in its underlying blockchain technology; either is enabling our financial system to make its transition from a failing fiat system to a decentralized economy.
Following the trend, here is how whales reacting to cryptocurrency in the week leading us to the end of 2020.
MassMutual become another institutional investor to invest in Bitcoin
Massachusetts Mutal Life Insurance Co. has purchased $100 million minority stakes in Bitcoin for its general investment
account. As reported by the Wall Street Journal, the company has bought 5,470 Bitcoin (BTC) at a market price of $18279. By buying $5 million through equity stakes, the firm has also invested in a New York-based fund management company NYDIG which holds $2.3 Billion in cryptos!
MicroStrategy to invest further in Bitcoin
Microstrategy’s CEO Micheal Saylor reportedly told Bloomberg that he sees Bitcoin as a less risky investment than cash or gold. According to filings, the company currently holds 40,824 Bitcoins. The company is now planning to sell convertible notes to raise capital worth $400 million so as to fund further Bitcoin investments.
JP Morgan says “Gold will suffer”
According to analysts at JP Morgan and Chase Co., “ the rise of cryptocurrency in mainstream finance is coming at the expense of gold.” In 2020 we saw growing mainstream acceptance of Bitcoin. This changing institutional allocation where BTC is emerging as a more accepted reserve asset, the trend may cause a major rift between gold and BTC, which might pull investors away from gold bullions.
The stage is setting up for when the cryptocurrency will become a more widely accepted global currency. XcelPay Wallet is a universal crypto wallet to keep your cryptos. Create multiple wallets within XcelPay wallet. Use fingerprint and face scanner to keep cryptos like Bitcoin, Ethereum, WIZ, and XcelToken Plus safe. Download this one of a kind crypto solution from Appstore and Playstore. https://bit.ly/3kPnp4L