COVID-19 Responsible For Increased Bitcoin Purchases

Bitcoin Protocol

Data from a recent survey conducted by Grayscale Investments tells us that the COVID-19 pandemic has played a major role in investors making new purchases of Bitcoin.

Bitcoin prices continue to skyrocket even amidst a major pandemic that has hit the market and the stock exchange. While all the major stocks are taking a downward turn, Bitcoin prices are on the upward curve. According to recent reports, Bitcoin has reached an all-time high of $18,000. Institutional investors are jumping in to secure new purchases of BTC (Bitcoin).

Bitcoin Prices Increase, New Investors Jumping In To Buy BTC

Market analysis shows that newer investors are interested in accumulating Bitcoin. Retail and Institutional investors are buying in bulk which is taking the trading volume to record heights.

This raises the question, why is Bitcoin purchases increasing rapidly?

Grayscale Investments, a trusted digital currency investment navigator company recently published a survey report conducted during the Covid-19 afflicted months of 2020 to find the true reason behind the whopping increase in cryptocurrency purchase demands. The report suggests that the current Bitcoin rally is due to the global pandemic situation.

Bitcoin Price
Bitcoin Price

Grayscale Investments Survey Report Analysis

According to Grayscale’s annual survey report, about 83% of new Bitcoin investors began their investments in the past 12 months. This reveals a pattern as the Covid-19 crisis has been among us for about a year now.

Within that, about 38% of the investors joined in the past 4 months. This is the time when Covid-19 was peaking globally. Other than this, the Grayscale report also states that about 63% of those surveyed state the economic downturn caused by the pandemic as the major driving force behind their decision to buy and accumulate Bitcoin.

The survey conducted also did a major task of marking the inclusion of Bitcoin in the mainstream market. The general outlook towards Bitcoin has considerably changed over the years. 55% of the investors who were interviewed mentioned their interest in dealing with Bitcoin. This is up from only 19% in 2019. Majority of the interviewed investors suggested that Bitcoin and other cryptocurrencies will be a major part of mainstream exchanges by the end of 2030.

The economic upheaval caused by the Covid-19 pandemic has been soothed by the presence of cryptocurrency markets. This has greatly increased people’s confidence in Bitcoin. This trend is on the upward curve and is likely to keep increasing till mainstream investors turn towards Bitcoin.

This is not far away from happening as a recent report from Citibank states that Bitcoin value is likely to climb to $318,000 by the end of next year.

Investors are still deliberating on the question of Bitcoin after Covid-19. However, the allure for Bitcoin accumulation is not likely to decrease in the near future with or without the novel coronavirus.