Investors have not stopped buying BTC despite doubts about the crypto market
The latest Bitcoin dilemma, which began on September 13 when the US Federal Reserve released the CPI report, has left retail investors in a difficult position.
The recent announcement that the Fed rate has been raised by 75 basis points has also affected the market. Instability in the broader financial environment reverberated through the cryptocurrency market.
The news caused BTC to fall below the critical $20,000 mark. Despite mainstream investors trying to get out of Bitcoin due to fear, recent analysis shows that large institutions are still investing heavily in Bitcoin.
At the time of writing, BTC is trading at $20,215, up 5.6 percent in the past seven days, data from Coingecko shows.
Bitcoin – an excellent choice for the future
New York Digital Investment Group (NYDIG) recently disclosed in a filing with the SEC that it had raised approximately $720 million to invest in Bitcoin. The fund attracted 59 investors, per the SEC.
Although the names of the investors were not disclosed, we can conclude that the limited number of investors and the total amount raised are wealthy people or large companies that want to diversify their holdings.
Image: CNBC
The NYDIG team has faced similar challenges before. With a market capitalization of $7 billion, NYDIG is valued at an all-time high after earning over $1 billion in revenue last year alone. WestCap led the funding round that propelled NYDIG to success the previous year.
Numerous financial markets such as Morgan Stanley and Mass Mutual participated in the investment round.
This indicates a growing institutional interest in cryptocurrencies, especially Bitcoin.
How does this affect Bitcoin?
As of this writing, BTC has surpassed the psychological support level of $20,000. This may be a result of recent progress in Bitcoin’s institutional investment sector.
Although it will take a long time for a major pullback to wipe out the losses from September 13, the price will undoubtedly rise.
However, Bitcoin investors and traders should not be too hopeful. We can expect NYDIG to buy crypto in batches, which will help bulls in the long run.
Indicators also point to short-term gains, where the fear and greed index is optimistic.
This is a positive indicator, but it sends sell signals to those who wish to liquidate their holdings. If Bitcoin can consolidate at the 61.80 Fibonacci retracement level, this will serve as support for the next rally.
However, the actual lift comes from an increase in private investor confidence, as most consumers will see the investment of financial giants in Bitcoin as a hint to invest in the cryptocurrency.
BTCUSD pair regaining some lost ground, trading at $20,225 on the daily chart | Source: TradingView.com Featured image from Forbes, Chart: TradingView.com
