Bitcoin highs may be partially based on enterprise holdings


We’ve been talking about institutional buy-in in terms of Bitcoin for a long time. It’s been prime fodder for dreams of BTC spiraling above $20,000, above $50,000, above $1,000,000. But now, we’re approaching BTC’s prior all-time high around 20K, and there are signs that corporate appetite for Bitcoin holdings are contributing in no small way.

Today Cointelegraph shows benchmarks being met in terms of the volume of Bitcoin being held by companies around the world.

Joseph Young cites estimated Bitcoin total corporate holdings of $15.3 billion as of November 20.

In explaining the rush toward BTC, Young and others often talk about the early investment of a firm called Microstrategy as a spark that lit the corporate world aflame with Bitcoin investment plans.

Microstrategy’s $425 million investment was somewhat unique at the time – when we look for correlating examples, we didn’t find many – but now Young says it has led to a “frenzy” in corporate purchases of Bitcoin.

“The demand for Bitcoin from companies and institutions likely comes from its growing reputation as a digital store of value,” Young writes. “Bitcoin is unique in that it can hedge portfolios against inflation, like gold, but has the potential to see exponential growth. Hedge assets are typically stagnant and demonstrate low volatility over a prolonged period. They are meant to operate as insurance for a diversified portfolio so that when the market dips, the portfolio is protected.”

Of course, analysts looking at BTC’s trajectory also cite the presence and buying strategies of “whales” that are not representing large firms. High net worth individuals have made a dent in the market, too, and they have also been interested in Bitcoin, not as a payment medium, but as a value store and a safe haven from volatile stocks, or even precious metals.

Is it now “the year of Bitcoin”?  What do you think?