Bitcoin Price Surges as Institutions Buy: Coinbase Executive Explains
Bitcoin Sees Institutional Demand Spike
John D’Agostino, Head of Strategy at Coinbase Institutional, highlighted the growing interest of large institutional players in Bitcoin during an appearance on CNBC’s Squawk Box. He emphasized that institutions, including sovereign wealth funds and insurance pools, are actively accumulating Bitcoin, a trend that was unimaginable just a few years ago.
Bitcoin Price Reaches $94,510
Bitcoin’s price recently surged to a local high of $94,510, reflecting a 3.67% increase over 24 hours and a 6.68% gain over two days. This upward momentum has drawn significant attention from investors and analysts alike.
Key Drivers of Bitcoin’s Growth
D’Agostino attributed Bitcoin’s recent growth to several factors:
- Decoupling from Traditional Markets: Bitcoin is showing both negative and positive correlations with the stock market, depending on broader economic conditions.
- Short-Term Tailwinds: Current market dynamics, such as global trade limitations and de-dollarization, are creating a favorable environment for Bitcoin.
- Institutional Strategy Shift: Institutions are buying Bitcoin and holding it rather than converting it to fiat, anticipating a potential weakening of the U.S. dollar.
Bitcoin as a Store of Value
Traders increasingly view Bitcoin as a digital equivalent of gold, especially during market instability. This narrative is gaining traction as global economic uncertainty pushes investors toward alternative assets.
Expert Insights and Market Sentiment
Anthony Pompliano, a prominent VC investor, noted the significance of institutional Bitcoin accumulation, calling it a remarkable shift in market behavior. D’Agostino also cautioned that Bitcoin’s reaction to macroeconomic factors can vary over time, similar to gold and other assets.
The combination of institutional adoption, de-dollarization trends, and Bitcoin’s growing reputation as a store of value positions it as a critical asset in uncertain economic times.
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