Public-listed companies are upping their stakes in bitcoin, which could provide long-term support to the price of the world’s first and most secure cryptocurrency. Their participation could also reduce market volatility several years down the road, potentially making bitcoin a more attractive asset class that may even be equivalent to gold in terms of importance.
T M Lee, co-founder of CoinGecko, says the participation of public-listed companies and other institutional investors is the key difference between the current bitcoin bull run and the previous one in 2017.
“Many retail investors have joined the bitcoin market in the past two months as its price rallied, but, surprisingly, the number is not as large as it was three years ago. The participation of institutional investors is really the key difference between the two upcycles,” he says.