Over the past week alone, the bitcoin price has exploded by about 15%, making the flaming hot cryptocurrency the talk of the world of finance.
Bitcoin’s meteoric resurgence has seen the coin gain nearly 150% since the start of 2020. This impressive growth is now catching the attention of Wall Street veterans.
JPMorgan Chase CEO Jamie Dimon, who successfully led his bank in launching its own digital token in early 2019, now says he is a believer in blockchain technology.
Speaking during a recent New York Times conference, the billionaire reiterated the need for the proper regulation of crypto. He projected that as bitcoin gets bigger and bigger, it will likely grab the attention of regulators.
Indeed, the crypto space is already seeing more clearly defined regulation from financial watchdogs, with countries like South Korea, India and China already developing enhanced guidelines for digital assets.
Dimon, who admitted to being wrong for calling bitcoin a fraud back in 2017, still insists that the king coin isn’t his “cup of tea.”
Another Wall Street player has questioned his scepticism of bitcoin in the past week. In a Nov 17 tweet, billionaire hedge fund manager Ray Dalio admitted that he could be “missing something” about bitcoin, given how its price has soared in the recent past.
Wall Street Sees Bitcoin as a Safe Haven Asset
Another former crypto sceptic, Jeffrey Gundlach, who had in the past referred to the digital asset as a lie, is now warming up to Bitcoin. The DoubleLine Capital CEO recently claimed that Bitcoin has made him an “honest man” in 2020, touting his January prediction that BTC prices would break past $15K this year.
Gundlach added that BTC has rallied in tandem with gold, thus proving its credentials as a hedge against inflation amid turbulent economic times.
The CEO of DeVere Group, Nigel Green, echoed his Wall Street counterpart’s sentiments, explaining that massive government spending during the Covid-19 pandemic is leading many investors to flock to safe-haven assets.
Green singled out BTC as particularly attractive to investors as a shield against heightened inflation fears, since the asset isn’t tied to any specific country. He added that other emerging trends, such as the rise of digital payments, increasing global trade and crypto adoption among younger folks would also bode well for Bitcoin.
BTC Adoption Garners Pace Among Institutions
Bitcoin is capturing the attention of more institutional players who seek to diversify their portfolios amid drastic government emergency measures such as the ongoing massive money-printing agenda.
According to hedge fund manager Ray Dalio, more institutional investors and large corporations are warming up to Bitcoin, despite its current lack of day-to-day transferability.
Indeed, more than twenty financial institutions announced that they had acquired BTC via the Grayscale Bitcoin Trust in the first half of 2020 alone.
More recently, payments company Square decided to diversify its USD-denominated balance sheet with a $50 million Bitcoin investment.
Square now joins a growing number of large institutions like Microstrategy that have recently directed massive capital inflows into the crypto space.