What Led To Large Companies Buying Bitcoin (BTC) In Recent Times?

With the Bitcoin adoption increasing in the corporate world in recent times, crypto’s future appears to be bright overall. The chances of prolonged institutional investing in Bitcoin depends on the returns they would achieve going forward. Hence it is highly important as to where the companies take position as Bitcoin (BTC) remains vulnerable. Whether the large companies buying Bitcoin turns out to be lucrative could have huge implications on the industry.

Why Large Companies Buying Bitcoin

In the space of last three months, Bitcoin (BTC) price dropped close to 50% in value while it was hardly steady. From over $32,000 in the end of May to a low of under $18,000, the asset price had quite a turnaround in short time. However, it was Bitcoin’s movement around $60,000 that attracted the attention of institutional investors. It made the big companies keep an eye out for the digital asset. But that was not enough to invest in Bitcoin and build a portfolio, according to Thomas Farley, CEO of a financial services company.

Speaking in an interview with CNBC on Tuesday, he said there were many companies that got interested when BTC was around $60,000. But as Bitcoin followed a downtrend to reach $17,000, many of the companies really stepped in at that time, he added. In fact, the CEO said the decisions were actually easy to take considering the price fall.

“When Bitcoin was at $60,000 you had a lot of institutions on the sideline who are looking and saying ‘boy we’d like to invest.’ So as it went to $17,000, it was not a shock to me that you saw some of those institutions step in. That was a pretty easy call.”

Bitcoin Price Rise

As of writing, Bitcoin stands at $23,098, down 4.40% in the last 24 hours, according to CoinMarketCap. Last week, the crypto asset rose to a high of $24,203 before suffering a correction. Meanwhile, short term investors are taking positions in Bitcoin in the futures market. With the opening of new contracts in futures, this is impacting towards Bitcoin price rise.

Anvesh reports major developments around crypto adoption and price analysis. Having been associated with the industry since 2016, Anvesh is a strong advocate of decentralized technologies. Follow Anvesh on Twitter at @AnveshReddyBTC and reach him out at [email protected]

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.