“Money is flowing out of conventional assets into Bitcoin due to the escalating risks of global currency devaluation, technology disruption, social dislocation & political uncertainty. This is not a “rally” or “bubble” - it’s a chain reaction spreading like a fire in cyberspace.” - Michael Saylor, MicroStrategy
Bitcoin, the leading global digital asset, has ascended 232,61 percent between January and December of 2020. Despite the macro-induced momentarily weakness in March, Bitcoin has performed exceptionally well. The rally has been distinctively driven by institutional appetite, with companies like MicroStrategy, Ruffer Investment Company, and Square entering the space. However, past performance is not necessarily a guarantee of future results, how to augur the year ahead? Let’s find out.
Institutional Bitcoin
The current market cycle, emerging in 2020, has been characterized by growing institutional demand. Perhaps the most famous Bitcoin allocation was made by MicroStrategy (MSTR), an US-based business intelligence company. MicroStrategy’s CEO Michael Saylor has distinctively positioned himself as a “bitcoiner”, allocating his own wealth vis-à-vis MicroStrategy’s resources.
