March 17, 2021 | AtoZ Markets – 2021 has seen interest in Bitcoin increase, as large institutional players flock towards crypto as demand and popularity grow.
Bitcoin has been hailed as a digital store of value, and over the years has seen its fair share of comparisons to gold. The latest proponent of this trend is the Liberty Bitcoin Cup sailing competition. This competition is home to the “next generation of world-class sailors”, all who compete on the “next generation of High-Tech Class Foil Sailing boats”. This competition would have traditionally used Gold Cups as their premier Cups, this new era of sailors is now powered by Bitcoin. Does this indicate more adoption?
Let’s see who else went crypto this week.
Investor Howard Marks Turns Positive on BTC
Also, this week we have seen legendary investor Howard take a U-turn green for Bitcoin, as he quotes “growing demand for cryptocurrencies makes it better than an emerging market currency.” Moreover, the billionaire investor said his initial response to the digital asset was a “knee-jerk” with a lack of information.
When BTC first emerged Howard was quick to dismiss the crypto because he felt it lacked intrinsic value. In a recent video interview with The Korea Economic Daily he cited “But there are a lot of things that people want and need that hold no value” highlighting items such as paintings, diamonds, and bars of gold. He also said Bitcoin transactions are instantaneous, unlike banks that cannot process wire transfers when they are closed. He added more reasons that add to Bitcoin’s finesse, including security & privacy.
Howard is one of the biggest investors in distressed assets complemented his statements by saying those that bought Bitcoin, at €5,000, a fraction of the price it is now “has made the right decision.” Further citing that his son “thankfully” owns a meaningful amount of BTC for the family.
Retail Investors Flock to Buy Bitcoin
Howard isn’t the only one hot on the crypto as we’ve seen in recent months. However, according to research by JPMorgan Chase, retail traders are buying more BTC than bigger institutions. Data suggests the retail trading community has purchased in excess of 187,000 Bitcoin in the first quarter of 2021. It is estimated that in the same period bigger institutions have purchased 173,000 BTC.
The surge in buying from retail investors is being attributed to “social media, the current NTF craze, and stimulus payouts” according to a senior market analyst at Oanda Corp, Ed Moya. Bitcoin has been a major talking point across mainstream media and social media in recent months. As a result, retail traders escape FOMO and flock to Bitcoin.
While credit for the bullish run and solidifying confidence in Bitcoin can be given to the bigger players such as Tesla, MicroStrategy and PayPal, etc. buying activity from retail investors has been a driving force in the asset reaching new highs. With experts confident that demand within this community will continue to grow.