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Grayscale survey: The new crown pneumonia pandemic may be the main driving factor of this round of Bitcoin bull market
As the price of Bitcoin rose to $18,000, traders tried to ensure that the price of Bitcoin hit a record high, and the enthusiasm for institutional investors to join Bitcoin continued.
This time, both institutional investors and retail investors are keen to accumulate bitcoin, and data from the cryptocurrency derivatives market shows that institutional investors are pushing bitcoin trading volumes to new highs.
Digital asset management company Grayscale Investment currently manages more than $9.8 billion in assets. According to the company’s research, the coronavirus pandemic may be the main driver of Bitcoin’s current rally.
According to Gray’s annual survey, 83% of Bitcoin investors started investing in the past 12 months, when there were very few cases of COVID-19 infection.
Of all bitcoin investors currently interviewed, 38% have started investing in bitcoin in the past four months, and 63% of them said that the economic turmoil caused by the new crown pneumonia has positively influenced their decision to buy bitcoin. influences.
Bitcoin is becoming mainstream
Gray’s survey also shows that Bitcoin is becoming more and more mainstream among the public and investors. Since 2019, the opinions of people who have not yet invested in Bitcoin have changed a lot. By 2020, 55% of the investors surveyed have expressed interest in buying Bitcoin, a significant increase from 36% in 2019.
Nearly half of the survey participants believe that by the end of this decade, cryptocurrencies will be regarded as the mainstream medium of exchange.
The tendency of investors to be attracted by Bitcoin’s store of value may increase, and the mainstream adoption of Bitcoin may be earlier than most experts and investors expected. Citibank’s latest report proves this. The author estimates that by December 2021, the price of Bitcoin may reach $318,000.
Once the new crown pneumonia ends, will Bitcoin lose its appeal?
For some investors, how the Bitcoin price will respond to the elimination of the new crown pneumonia epidemic is a very reasonable question. According to Jonathan Hobbs, the author of “Cryptocurrency Portfolio” and a former digital asset fund manager, the effects of this pandemic will become apparent long after the COVID-19 itself is under control. Hobbs told Cointelegraph:
“New crown pneumonia is the match that ignited institutions to adopt bitcoin. But before that, firewood had been piled up. Now the fire is still burning and it takes a lot of water to put it out. When the world finally cures the new crown pneumonia, the economy will remain The central bank will continue to print money as it did since the 2008 financial crisis, trying to eliminate these debts through inflation. This means that long after the pandemic is over, institutions will use Bitcoin as an inflation hedge The tool talk will continue.”
Obviously, the large-scale economic stimulus plan and expanding monetary policy caused by the negative impact of the coronavirus have changed the foreseeable future economic landscape.
Although some analysts may have overestimated the impact of the coronavirus pandemic on Bitcoin’s 2020 rally, it is clear that it has played a role in accelerating investor interest in cryptocurrencies.
Investors believe that one of the main advantages of Bitcoin is its low threshold and its ability to capture value when traditional markets are turbulent. Even if the pandemic ends, these factors may continue to exist.