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Demand for Bitcoin increases as GrayScale Purchases $370 million in BTC

The demand for Bitcoin is increasing due to the new exposure investors are getting about the crypto industry. The relatively new industry survived doubts and criticism, which dominated most of its early years. Now, people use cryptocurrencies to make their lives better. People use digital assets as a store of value, a cross-border payment means, and an investment. GrayScale made some massive Bitcoin purchases, which sources linked to the previous surging of the digital asset.

Last month, the firm bought sizeable amounts of Bitcoin, and now in January, the company is already nearing its previous purchase. Early this year, experts opined that GrayScale’s trading volumes would prevent Bitcoin from facing corrections. Unfortunately, even with the firm’s investors, Bitcoin corrected, which removed $10,000 from its all-time high.

Grayscale makes new purchase

Last year saw several institutional investors coming into the industry and investing attractive amounts of money into it. Despite not being new to the industry, GrayScale’s institutional money in December is one of the notable purchases of 2020, which influenced other firms, businesses, and individuals to make investment decisions.

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GrayScale’s total Bitcoin holding, for now, is close to 10,000 BTC within three days of continuous purchase. The business recently opened for 2021 and bought $80 million worth of BTC immediately. Not only that, a day after that investment company bought almost 3,000 BTC. On January 15, the company purchased nearly $200 million worth of BTC and has not spoken concerning its hefty buys.

With new buying patterns, it’s evident that the global demand for crypto increased, especially since it skyrocketed, which got massive attention in social media platforms like Twitter. When Bitcoin hit its $42,000 peak, the digital asset trended for days on Twitter, with investors sharing their views and predictions concerning the digital asset. The increased demand shows that a new market might be out there searching to explore or expand its Bitcoin holdings.

Interestingly, large buys started around November, when the company bought $100 worth of BTC in total that month. Along the line, December faced large attraction to Bitcoin, with the firm purchasing over $480 million worth of Bitcoin and the first few weeks in January already showing signs of an interested market.

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GrayScale creating BTC exposure

The firm exposes inexperienced people to the world of cryptocurrency by indirectly allowing investors to make investments through the platform. Ever since 2018, GrayScale’s trading volumes continue to increase, with 2019 dwarfing 2018’s demand. Last year, GrayScale won Bitcoin $6 billion worth of investments. The previously ignorant world now has knowledge about the industry and willing to have held.

One of the firm’s founder explained that indirect exposure brings Bitcoin to the masses, even when they are not knowledgeable about that aspect. The large volumes balanced the crypto’s volatility and help it rise amidst several factors that caused price corrections. Experts informed that price corrections are inevitable since traders would always do fast transactions with their holdings, making it hard for investors to hold assets long-term. Also, with new BTC coming into the market, it will help the digital asset appreciate.

Bentley Kapoor (India)

Bentley is a cryptocurrency enthusiast and trader, his articles are news and platform review based. His writings are brought to you through his 10 years of experience in the cryptocurrency markets.

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