The past week has seen an enormous surge in cryptocurrency prices. Both Ethereum and Bitcoin are expected to reach all time highs by the end of the year and this has certainly drawn the attention of large scale investors. This week, the crypto market was boosted with an enormous $20 billion worth of transactions coming from some of the largest names in the industry.
The amount of institutional investors have had a large role to play with all the latest developments within the crypto market. The world’s most valuable crypto exchange, Coinbase, has seen a dramatic increase of buying interest from institutional investors and attributes this to the success of both Bitcoin and Ethereum during the past month. “We’ve had an explosion of activity… I joined in April of this year. At that time, our institutional assets under custody were $6 billion. Today, we stand at over $20 billion. So more than a three-time increase…”, says Brett Tejpaul, the head of institutional coverage at Coinbase.
The Bitcoin price is fast approaching the $20,000 mark and most investors back the trend to continue. The valuation of Coinbase’s crypto assets has now reached $20 billion with $14 billion of that coming the previous 7 months. This exponential increase in activity has seen most cryptocurrencies reaching all-time price highs. Many renowned names have publicly stated their intent to back Bitcoin with Paul Tudor Jones being the most notable, investing 2% of his assets into BTC.
With the announcement of Ethereum 2.0 also coming this week, the bullish trend was followed across all cryptocurrency markets. The announcement came in the form of a deposit contract which was met with a few hours to spare. The trend can largely be attributed to the gaining momentum of support that crypto markets have stumbled upon, only now is the concept of investing in these currencies becoming mainstream. Investment management companies and all the big hitters of the hedge fund world are slowly endorsing the value of Bitcoin and some have even stated that it is a superior investment to gold. Only time can tell how the crypto market will play out but for now, it is definitely gaining hefty momentum.