Besides billionaires’ positive comments over Bitcoin, the top executives of the investment companies have also expressed their opinions about the world’s leading digital currency.
Institutional Players are Responsible for BTC Shortage
Dan Morehead, the CEO of Pantera Capital, claims that the shortage of Bitcoin in the market is pushing the price value upward. In his interview at CNBC, Morehead further told that giant institutional companies such as PayPal and MicroStrategy, are busy buying BTC, which resulted in a shortage of supply.
The Q4 of the year is really praised worthy in the entire history of Bitcoin as value reached new all-time highs in this period. On September 22, the flagship cryptocurrency was standing at $10,300, and in the second half of 2020, it marked a new high above $24,000.
The chief executive of Pantera Capital believes the purchase of the top digital asset by large institutional players has created a “shortage” of Bitcoin, which has led the “price to squeeze up.”
When asked about the potential risks attached to crypto, he explained that these are the early days of the crypto product, and once it matured, there will no risks at all. “It’s very, very early days for a brand new asset class so there’s going to be volatility on both sides,” he said at the platform of CNBC.
According to Morehead, the mainstream media is playing a role in telling people how useful Bitcoin is or about insane growing BTC adoption at a large scale. It is due to increasing adoption that price value is turning more bullish and maintains its position above $24,000. He outlined a scenario that there were only one million people attached with the network when flagship digital asset was trading at “$200 six years ago.” In these six years, the figure has jumped from one million to more than a hundred million people with a price increase from$200 to above $23,000.
Since the start of 2020, the flagship cryptocurrency has surged by more than 220%, which declares it the best asset in giving high return over investment. The major driving force which pushed value to new levels is the money from institutional investors. This is the only difference between the latest bull run and the one that happened in 2017 when there was only retail money.
Currently, the top digital is standing at $23,642 after an increase of 3.81% over the last 24-hours.