From exchanges and futures markets with new highs in Bitcoin trading volume, to the American investment giant betting on a new high value, and a hedge fund buying more than a billion in BTC, it is clear that this year the interest and institutional investment in Bitcoin will be unprecedented.
2021 has started on a good foot. Bitcoin (BTC), the leading cryptocurrency in digital markets, reached new all-time highs in a few days, and trading and operation volumes in Binance, One exchanges de cryptocurrencies, most popular in the industry, and in futures markets such as CME Hours y LMAX They are reaching new milestones. On the other hand, investment giants like JPMorgan They are adopting a more favorable position regarding the development of Bitcoin, which in 2020 proved to be one of the most profitable investment assets, alternatives to gold. Likewise, the Singapore-based hedge fund, Three Arrows Capital, revealed a $1,3 billion investment in Bitcoin via Grayscale Bitcoin Trust (GBTC).
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Binance, 80 billion in daily trading volume
Binance, the largest exchange in the world by trading volume, reported this January 4 that the platform achieved a new all-time high in daily trading volume, which quadrupled the trading volume seen between November and December 2017, when Binance was also the largest exchange at that time.
The figures shown by Changpeng Zhao, CEO of Binance, reveal that the largest daily trading volume was concentrated on the derivatives platform, with a volume of more than $56,8 billion; while on the spot exchange platform, Spot, the daily trading volume was 23,6 billion.
The daily trading volume on both platforms brings Binance’s trading volume to a whopping $80,4 billion as of January 4. Zhao said that between November and December 2017, Binance managed to reach around $20 billion in trading volume for an entire month, making this new figure a record for the exchange, while also demonstrating the huge interest in Bitcoin and cryptocurrencies in the markets.
Zhao also acknowledged in his tweet that the large volume of operations carried out by Binance caused some errors and scalability problems on the platform, although he also assured that his work team is already making the necessary adjustments to correct the errors and provide an excellent service. to its customers and users as the exchange continues to grow.
On Binance, Bitcoin trading operations occupy about 48% of all trading that takes place on the platform, in the BTC/USDT, BTC/USD, BTC/BUSD and BTC/EUR pairs, according to data from CoinMarketCap.
CME Bitcoin Futures and LMAX Digital break all-time highs
Bitcoin futures and derivatives markets are also making new all-time highs, as institutional interest in BTC continues to grow. The CME futures platform and the LMAX trading platform reached $2,7 billion and $2,6 billion in trading volume respectively.
In this way, the renowned cryptocurrency analyst and investor, Joseph Young, noted that futures on the CME Bitcoin Futures platform recorded a trading volume of $2,7 billion, an all-time high for this company. Likewise, the expert highlighted that LMAX came very close to this value, with a total volume of 2,6 billion dollars.
For its part, Bendik Norheim Schei, head of research at Arcane Research, also took the opportunity to highlight that the daily trading volume on the institutional trading platform LMAX reached a new record this January 4, exceeding $2,62 billion in trading volume. Norheim Schei assured that this is one more sign, for the industry, that institutional investors are already “they are here.”
Analysts point out that the fact that these products are reaching new historical highs, in the times of uncertainty that we are experiencing again due to a possible resurgence of COVID-19 and new confinement measures, is an extremely optimistic sign for the entire digital industry. which demonstrates all the current maturity of digital markets and the disruptive potential with which cryptocurrencies were created. Companies and companies are looking for feasible solutions to face current economic problems.
JPMorgan bets on $164.000 USD for BTC
For analysts and strategists JPMorgan Chase & Co, Bitcoin has the potential to grow to a new value of $164.000 USD in the long term, and continue to establish itself as an alternative asset class to gold. According to the report published by Bloomberg, JPMorgan considers that $164.000 USD is a target price for BTC, but that it should be considered long-term, and not for the end of this year as many expect. Analysts note that the convergence between BTC and gold volatilities is a process that will take a few years.
In the past, JPMorgan noted that Bitcoin would also grow in popularity and adoption as it is driven by the generation of the Millennials, who are more familiar and adapted to the Internet era and technological advances. Thus, as Bitcoin is a cryptocurrency, Millennials will be more attracted to this asset as an investment than to gold.
In 2020, Bitcoin showed a growth of 300%, an annual increase that is quite difficult to overcome for investment assets and stocks in traditional markets. Likewise, so far this month, the growth of BTC in its value has been close to 25%, while more companies and companies are investing a large part of their resources in this cryptocurrency, such as the investment that Three Arrows Capital just made recently.
Three Arrows Capital invests 1,3 billion in Bitcoin shares
The famous hedge fund company Three Arrows Capital just revealed a Your Strategic of 1,3 billion dollars in Bitcoin, which was made through Grayscale, the largest crypto asset management company in the world.
The recent acquisition gives Three Arrows Capital ownership over 36.969 BTC, which was acquired through the purchase of 38.888.888 GBTC shares in the Grayscale Bitcoin Trust. Each share is worth $34,10 USD and can be exchanged for real bitcoins at a rate of 0,001 BTC per share.
The news was highlighted by Kyle Davies, co-founder of Three Arrows Capital, on his Twitter account, where he also states that the company will continue to work with Grayscale to increase its investments in Bitcoin.
This is one of the largest institutional investments, and the largest single purchase ever made in Bitcoin to date. MicroStrategy's investments remain the largest institutional investment, with more than 70.400 BTC under its control, but to achieve this amount, MicroStrategy made investments progressively, and not a single purchase as Three Arrows Capital recently did; although it is not yet clear if this investment in BTC was made at the request of a specific client.
At press time, Grayscale's digital assets under management exceed $20 billion; an increase of 5,2% compared to the last values shown on December 30. Finally, companies of the scale of MicroStrategy and One River revealed that in 2021 they will continue to invest significant capital in Bitcoin; while Michael Saylor, CEO of MicroStrategy, will continue talking about the potential of cryptocurrencies.
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