There is a noticeable trend in the world of cryptocurrencies – Bitcoin is becoming increasingly attractive to institutional investors. This may lead to a change in prices and conditions for retail buyers.
Bitcoin as a hedge against geopolitical risks
Today, Bitcoin is seen not only as an asset for speculation, but also as a means of protecting against geopolitical risks. In the context of economic uncertainty and rising tariffs on imports from the United States, investors are looking for alternative ways to preserve capital. Bitcoin remains the only protection from borders and inflation for many.
Growing interest from institutional investors
In April, Bitcoin ETFs attracted more than $3 billion, indicating growing interest from institutional investors. Analysts predict that the price of Bitcoin will rise to $200,000 this year and to $1 million by 2029.
Asset managers traditionally prefer gold to hedge macroeconomic risks. However, economic uncertainty is fueling interest in digital assets, and Bitcoin is becoming increasingly popular among institutional funds.
Big Bitcoin Ownership
As of May 1, institutional funds hold more than $128 billion in Bitcoin. Corporate treasuries hold another $73 billion in Bitcoin.
Sovereign nations, including the United States, China, and the United Kingdom, are also showing interest in cryptocurrencies. However, it is worth noting that a significant portion of sovereign wealth comes from seized crypto assets.
Despite the growing participation of institutional investors, retail investors also continue to show interest in Bitcoin. However, the time for retail investors to accumulate Bitcoin may be limited due to accelerating institutional adoption.
Experts are monitoring the cryptocurrency market and warning of possible changes in the terms of buying Bitcoin for retail investors.
