As Bitcoin hits $17,800 – near all-time highs – nearly three-quarters of high net worth individuals will be invested in cryptocurrencies before the end of 2022, reveals a new global poll.
The survey, carried out by deVere Group, one of the world’s largest independent financial advisory organisations, finds that 73% of poll participants are now already invested in or will make investments in digital currencies, such as Bitcoin, Ethereum and XRP, before the end of 2022.
The findings come as the price of Bitcoin rallied to $17,858 – almost at the $19,763 all-time high reached in December 2017.
The surge takes the leading cryptocurrency’s total market capitalisation to over $315 billion, just below its $335 billion record.
The 700-plus respondents are clients who currently reside in North America, the UK, Asia, Africa, the Middle East, East Asia, Australasia and Latin America.
‘High net worth’ is classified in this context as having a more than £1m (or equivalent) in investable assets.
Of the survey, deVere Group CEO and founder, Nigel Green, who launched the pioneering deVere Crypto app in 2018, said: “The price of Bitcoin is up 125% year-to-date, making it once again one of the best-performing assets of the year.
“As the survey shows, this impressive performance is drawing the attention of wealthy investors who increasingly understand that digital currencies are the future of money and they don’t want to be left in the past.”
The same poll undertaken last year found that 68% of high net worth individuals are now already invested in or will make investments in digital currencies before the end of 2022, meaning there has been a jump of 5% year-on-year.
He continues: “No doubt that many of these HNWs who were polled have seen that a major driver of the price surge is the growing interest being expressed by institutional investors who are capitalising on the high returns that the digital asset class is currently offering.
“They – including some of the biggest Wall Street banks amongst others – are now aware that the world’s biggest and most influential decentralised currency isn’t going anywhere.
“This will mean that they are set to bring even more of their knowledge and capital into the already booming sector – and this is unlikely to have been overlooked by wealthy retail investors.
Mr Green goes on to add: “Nor too will the recent decision by one of the biggest payment companies in the world, PayPal, to allow customers to buy, sell and hold Bitcoin, have gone unnoticed.”
In addition, the deVere CEO says that investors are being attracted to bullish Bitcoin as it is a “legitimate hedge against longer-term inflation concerns which have come to the fore due to stimulus packages” – more of which are promised by major governments and central banks around the world.
“These emergency measures, like the massive money-printing agenda, reduce the value of traditional currencies like the dollar.
“Other inherent characteristics of cryptocurrencies are piquing interest too. These include that they’re borderless, making them perfectly suited to an ever globalised world of commerce, trade, and people; that they are digital, making them perfectly suited for the increasing digitalization of our world; and that demographics are on the side of cryptocurrencies as younger people are more likely to embrace them than older generations.”
Mr Green concludes: “High net worth individuals are not prepared to miss out on the future of money and are rebalancing their portfolios towards these digital assets.”
Cryptocurrency: Facebook Owned Libra to Launch Stablecoin in January 2021
Facebook Inc led Libra Association is planning to launch Libra stablecoin pegged to only the United States Dollar as early as January 2021, according to three anonymous people quoted by the Financial Times.
The stablecoin was initially proposed to be pegged to a basket of multiple currencies before the group faced several setbacks after the US parliament pressure Facebook on data breach and other issues that allegedly allowed Russia to meddle in the 2016 US presidential election.
The social media giant has now cut down on its ambition to focus on US dollar-pegged stablecoin in an effort to reduce regulatory bottleneck.
PayPal Inc., one of the first members of Libra Association that pulled out after regulators increased scrutiny on Facebook operations, has since started a cryptocurrency exchange business.
Bitcoin Drops Over $3000 to $16,806 Per Coin as Whales Prepare to Take Profit
Bitcoin price depreciated by over $3000 in the last three days to $16,806 per coin following the transfer of almost $1 billion worth of Bitcoins from wallets to exchanges by bitcoin whales.
Also, almost $2 billion worth of derivative positions have been liquidated in the last 24 hours while $1.6 billion worth of positions have been closed in the last 12 hours, according to data from Bybit.
Bitcoin Whales are individuals or groups that own 1000 BTC or more in a single wallet.
The world’s most dominant cryptocurrency Bitcoin rose from $10,000 to $19,400 per coin in the last seven weeks due to global uncertainty and the negative impact of COVID-19 on traditional assets.
However, it was the report that the United States Treasury Department plans to track owners of self-hosted cryptocurrency wallets that halted the bullish run and forced a pullback as whales that preferred to remain anonymous have started moving their coins to protect earnings against potential taxes.
Alex Kruger, Coinbase CEO, said “This [regulatory concerns], against a backdrop of euphoria and unsustainable high leverage among longs led to the largest 24-hour drop since March.”
Quoting Brian Armstrong, who first tweeted about Treasury Department’s plan to track Bitcoin Whales, Kruger said bitcoin and the entire cryptocurrency space could turn extremely bearish if that tweet turned out to be true. However, he said it is highly unlikely in the short-term.
He said “if what Armstrong talked about comes to be, it would be extremely bearish. As of now, I see that as highly unlikely (in the short-term).”
Kruger added that OKEX’s recent announcement that it has resumed withdrawals might have amplified the bearish trend that led to over a $3000 plunge in bitcoin value.
“Most of the frozen bitcoin [on OKEx] had traded up around 70%, so there were a lot of unrealized profits locked up there,” Sui Chung, CEO of CF Benchmarks, said in a statement. “Once these coins were free to move, it’s likely many traders sold them for dollars and stablecoins to realize those gains, adding greater momentum to the selling.”
Bitcoin Hits Record $19,259 a Coin on Tuesday as Demand Jumps Through the Roof
Demand for the world’s most dominant cryptocurrency, Bitcoin, rose to a record high on Tuesday amid Trump’s renewed attack on China and general global uncertainty.
Bitcoin rose by 5.2 percent to $19,259.64 or N9.471 million per coin as of 2.24 pm Nigerian time on Tuesday.
Ripple rose by 25.05 percent to 0.00003271 BTC or N233.25 per coin, representing over 100 percent increase in the last one week.
Similarly, Bitcoin Cash advanced to fourth place among the most capitalised cryptocurrencies after gaining 16.90 percent in the last 24 hours to 0.00154 BTC or N129,101 per coin with N2.36 trillion market capitalisation and N170.29 billion volume of trade in the last 24 hours.
Demand for cryptocurrencies rose late on Monday after President Trump renewed his trade war with China, in a move that suggested he is out for revenge.
Few reports have said China was supporting the President-elect, Joe Biden, prior to the US presidential election, and as such was using cyberspace to push that agenda like Russia did in 2016.
The surged in global tension despite COVID-19’s three different vaccines led to an increase in demand for cryptocurrencies by institutional investors in the last 24 hours.
Also, demand for crypto assets on both PayPal and CashApp platforms has exceeded the entire supply of newly minted bitcoins, suggesting a serious supply pressure and likely surge in price above the current level in the near-term.
Bitcoin could set a new all-time record high in few days if demand remains high.
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