The latest market news has shown that major big-time financial institutions are presently accumulating massive Bitcoin despite the volatility present in the market. According to the news released by a media outlet, Bloomberg, it shows that institutions are working tirelessly to reduce the total supply of Bitcoin in the market. The Bitcoin halving events that occur every four years is responsible for cutting by half the total number of Bitcoin produced by block.
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The last one that happened last month saw the total Bitcoin produced per block reduced from 12.5 BTC to 6.25 BTC. The main aim for the halving event is to reduce the total number of Bitcoin in circulation which will, in turn, present a scenario where demand would be massive which will skyrocket the price of the crypto. Bitcoin has managed to stay on the news before and after the halving with major analysts saying that the surge that is always expected will not occur this year. Major investors are still trying to know the reason why Bitcoin is still volatile.
Financial institutions are buying up BTC
With various reports showing that financial institutions are massively buying up the leading digital asset, Grayscale investments have been said to have bought 25% of the newly mined coins after the halving. JP Morgan is now actively involved in the Bitcoin buying spree with most of the community saying that Goldman Sachs’s view about Bitcoin is unclear. Goldman Sachs asked people not to be actively involved with the crypto, a view most people have discarded.
Bitcoin supply is reducing, Bloomberg says
Bloomberg has noted the technique taken by banks to ease the adoption of fiat currency when dealing with cryptos. The firm stated that if money one can save up to print paper for a currency can be saved up, one can put it in Bitcoin or Gold investment. With major big-time investors and financial institutions concerned about the performance of Bitcoin in the long term, they are willing to take the risk of the rise and fall in the short term.
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Bloomberg started its 2020 report with the following words, “Something Needs to Go Really Wrong for Bitcoin to Not Appreciate.“ The report further gave insight on the Grayscale funds saying that the premium is on a decline even with the massive inflow of assets. The report stated that the decline can only mean one thing and investors are braced up for the news of the reduction in the supply in Bitcoin.