SINGAPORE — Bitcoin’s record-smashing rally seen in recent weeks was partly driven by the entry of more big, institutional investors into the market, according to PwC’s global crypto leader Henri Arslanian.
The digital currency surged over $30,000 for the first time on Saturday and had advanced more than 300% in 2020, Reuters reported. On Monday afternoon in Asia, Bitcoin traded at around $32,668.93, according to CoinDesk.
The cryptocurrency has been around for a little over a decade, but it only began to rise in popularity among mainstream institutional investors last year. Crypto bulls have said that bitcoin is seen as a hedge against inflation, similar to gold.
“When you look at this bitcoin rally that we have been seeing in the last couple of weeks and months, really, there’s two big elements driving it. One is the continuous entry of institutional players,” Arslanian said Monday on CNBC’s “Street Signs Asia.”
Bitcoin’s price resurgence last year was in part fueled by well-known Wall Street billionaires publicly backing the cryptocurrency. Analysts said their endorsement gave confidence to otherwise skeptical, mainstream investors. Investors such as Paul Tudor Jones and Stanley Druckenmiller have both put money in bitcoin and pointed out its potential as an inflation hedge.
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