Undeniably, the 2020 Bitcoin rally is primarily driven by institutional investors. According to Garric Hileman, head of Research Blockchain, investors are taking reserve currency status more seriously. And is one of the chief reasons behind BTC expecting a $1 trillion market cap as early as 2021. And it is one of the major reasons behind BTC reaching the $1 trillion market cap as early as 2021.
Well-known institutional players like BlackRock, Grayscale, MicroStrategy, Square, etc., and famous personalities like Bill Miller, Jack Dorsey, Stanley Druckenmiller, to name a few, have already acknowledged that Bitcoin is here to stay. The large-scale adoption of Bitcoin has driven it to become a reserve asset validating the digital gold thesis.
The current market cap of Bitcoin is over 1 trillion, and the first quarter of 2021 is not over yet! Surely the first crypto-currency of the market is making huge moments. Bitcoin has shown a surge of 192% of its price in just a span of the past three months. Clearly, the underlying reasons for BTC bull are the adoption of digital assets.
Adoption of Bitcoin
Bitcoin along with the entire crypto market is going ahead with great strength, and it looks like there is no turning back. Recent news of the U.S., Miami supporting Bitcoin illustrates the depth of acceptance of BTC. The city is also supporting efforts to make Bitcoin an acceptable currency for investing in the state treasury. For these efforts, Mayor Francis Xavier Suarez, 43rd mayor of Miami, has also received appreciation from the crypto-community.
Bitcoin epic run is winning more attention on Wall Street. After a week of Tesla announcing its investment of $1.5 billion in BTC, the digital asset has made a high bull and made Morgan Stanley consider a BTC investment.
Bank of New York Mellon also revealed that it will roll out new custody services in which they start financing Bitcoin and other cryptocurrencies. The bank will allow multiple cryptocurrencies to pass through the same financial network, currently used for traditional holdings and equities.
The Bottom Line
With such a massive adoption of digital assets worldwide, the strategies of big companies, banks, payment processors, big investors, etc. have shifted towards considering BTC into transactions. The flow of money into the crypto-market has also worked towards the distribution of wealth, which was previously concentrated only into a few hands.
Signs of BTC surpassing the market cap of $1 trillion were hinted at for a long time, and it finally happened. Also, the digital gold holds the potential to soar up to $100,000 by the end of this year. Let me know your opinion in the comments below.