Here's Why It Could Still Be Early Innings for Bitcoin
Bitcoin's (CRYPTO: BTC) monumental run through 2020 and 2021 created a whole new macro asset class and industry. It's the type of thing that movies will be made about one day. But is it possible that these exponential gains could still just be the beginning for Bitcoin? While the largest cryptocurrency is down 2% year to date after a 302% gain in 2020 and a 57% gain on top of that for 2021, there are several reasons that the original cryptocurrency could be gearing up to head even higher over the long term.
While Bitcoin started as a retail investor story, large hedge funds, institutional investors, and even corporations have become an increasingly large part of Bitcoin's story since 2020. Over the past two years, a who's who of legendary hedge fund managers and investors, including Bill Miller, Paul Tudor Jones, and even Ray Dalio, have spoken positively about the token. Chief executive officers including Elon Musk, Jack Dorsey, and Michael Saylor have acquired Bitcoin for their corporate treasuries.
Now, in 2022, it looks like some of Wall Street's largest institutions are looking to plant their flag in the world of Bitcoin. BlackRock CEO Larry Fink recently said he is seeing increasing client interest in cryptocurrencies and the world's largest asset manager began trading Bitcoin futures last year. Furthermore, Goldman Sachs recently changed its homepage to prominently feature the metaverse, Web3, and cryptocurrency, and the 153-year old investment bank made headlines for becoming the first major U.S. bank to make an over-the-counter Bitcoin purchase, in a transaction with Galaxy DigitalHoldings. These transactions are notable in that Goldman and BlackRock had previously been hesitant toward Bitcoin and cryptocurrencies. Offering Bitcoin and other cryptocurrencies to their clients will bring in a lot more demand for this limited resource.
Source Fool.com
