2 Key Reasons Why Bitcoin Bulls Expect Further Upside
Bitcoin has seen strong gains over the past seven days. According to CoinGecko, the leading digital asset is up 16% in the past seven days, outperforming Ethereum and a number of other digital assets.
Despite this strong rally in the price of the leading digital asset, analysts are expecting further gains in the weeks ahead.
Here are a few reasons why this sentiment has been shared about Bitcoin.
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#1: Bitcoin Is Seeing Strong Corporate Demand
Bitcoin is seeing strong demand from players like MicroStrategy and other corporate players.
Just this past week, it was revealed by the business services company that it will be raising nearly $1 billion to buy Bitcoin through the sale of corporate bonds. The firm announced on the matter:
“MicroStrategy® Incorporated (Nasdaq: MSTR) (“MicroStrategy”) today announced the pricing of its offering of $900 million aggregate principal amount of 0% convertible senior notes due 2027 (the “notes”). The notes will be sold in a private offering to qualified institutional buyers… MicroStrategy intends to use the net proceeds from the sale of the notes to acquire additional bitcoin.”
It is expected for this sale to end in the coming week. Should the sale succeed, the proceeds will be “TWAPped” into the Bitcoin market, representing a material increase in demand for the leading digital asset.
— Michael Saylor (@michael_saylor) February 17, 2021
Other corporations such as Twitter are also looking into purchasing Bitcoin to hedge their balance sheets against the inflationary effects depressing the U.S. dollar.
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#2: Inflows Likely to Increase With Custody Solutions
There are prominent investment banks and institutional players that are working on institutional custody solutions that are likely to drive demand for Bitcoin and other digital assets.
As reported by The Wall Street Journal, Bank of New York MellonCorp., the nation’s oldest bank, is working on a digital asset custody solution.
The firm said last week that it is working on a system that will allow it to “hold, transfer and issue bitcoin” and other digital assets.
The firm’s executives see that there is an increasing amount of demand for Bitcoin and other digital assets.
BNY Mellon’s offering will be unique in that both retail and institutional players will be able to access Wall Street-grade custody for both digital assets and traditional assets through one broker, which may lower the barrier to entry for prospective investors.
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Featured Image from Unsplash Chart from TradingView.com Price Tags: xbtusd, btcusd, btcusdt 2 Key Reasons Why Bitcoin Bulls Expect Further Upside