Bitcoin is becoming a less volatile asset than 3 years ago, attracting more corporate investors to consider investing in this potential cryptocurrency.
Bloomberg Intelligence commodities analyst and strategist Mike McGlone, points out that the volatility of Bitcoin (BTC) in the current bullish rally is much lower than that seen in 2017, while a poll applied by the firm Gartner Inc., reveals that about 5% of corporate investors consider Bitcoin as a potential long-term investment asset, and that they will begin to adopt this year.
“Five percent of respondents indicated they would start holding bitcoin in 2021.”
Although it is true that, compared to other traditional assets such as gold, Bitcoin's volatility is still high and continues to be a concern for many, if compared with figures from previous years, volatility has reduced by more than 50%. The data from Woobull Charts, a platform that analyzes the behavior and evolution of Bitcoin, shows that the current volatility of the cryptocurrency is at 14,06%; while in December 2017, when Bitcoin's “boom” took place at its maximum of $20.000 USD per unit, the volatility level reached 32%.
Source: Woobull Charts
McGlone believes that the change in volatility in Bitcoin is highly related to the perspective that investors, and society in general, have regarding the potential and benefits of the cryptocurrency. Today, BTC is gaining ground in the markets as a long-term investment asset, and even shows greater attractiveness than other assets in the Standard & Poor's 500 index (S&P 500), in terms of volatility.
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Bitcoin as an investment asset
Appreciations regarding the risks of investing in Bitcoin have been dissipating little by little over time; especially, due to the demonstrations and the many reliable tests that the cryptocurrency itself has carried out, of serving as a reliable instrument for long-term investment. To realize this, just go back a few months, when microstrategy invested just over $1.200 billion to purchase about 70.000 BTC; an investment that today is valued at more than 3.500 billion dollars.
The same happens with the investment made by Tesla, the largest electric car manufacturer in the United States, which recently invested $1.500 billion in the cryptocurrency. Like MicroStrategy, Tesla's investment is yielding big profits, thanks to the current appreciation and revaluation of the price of Bitcoin.
The signs of maturity of the Bitcoin market have been appreciated even by analysts from JPMorgan, the largest financial services firm in the United States, which had maintained a fairly reserved, and even unfavorable, opinion towards the cryptocurrency. However, in January of this year, the firm's analysts indicated that Bitcoin could rise to $146.000 per unit, and that it may be a better alternative investment asset than gold, since the market has several signs of maturity. , which can cause the price of BTC to continue growing in the future, showing a clear change in attitude towards Bitcoin as an investment asset and store of value.
Growing institutional adoption
Today, Bitcoin has a higher level of trust and security, which has attracted hundreds of millions of users, and dozens of institutional investors; a reality that translates into greater adoption and less volatility in its price. In January, McGlone also noted during an interview that as Bitcoin's market capitalization increases, commercial banks and even central banks may show greater interest in adopting this cryptocurrency. McGlone's prophecy was fulfilled almost two months later, with the BNY Mellon y Deutsche Bank preparing to launch various financial and custody services with Bitcoin.
At the closing of this note, BTC has a value of $52.200 USD per unit, and reached a historical maximum of $52.457 USD this February 17th. Its market capitalization is close to touching $973.300 trillion, at more than $2020 billion. The price of Bitcoin may continue the bullish trend, and be driven to new highs. At this point, institutional and corporate interest in this cryptocurrency seems unstoppable. MicroStrategy, the largest institutional Bitcoin investor in 600, is again at the forefront of corporate BTC adoption, adjusting its latest private offering of convertible senior notes from $XNUMX million to almost 900 million to be invested in Bitcoin.
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