Grayscale Survey Links COVID-19 Pandemic With New Bitcoin Purchases

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As the price of Bitcoin climbs to $ 18,000 and traders try to hit a new all-time high, the rise of institutional investors betting on the Bitcoin (BTC) bandwagon continues.

This time around, institutional and retail investors alike are keen to accumulate bitcoin, and data from crypto derivatives markets shows institutional investors are pushing bitcoin volume to new highs.

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BTC futures volume after exchange. Source: Digital Assets Data

According to research by Grayscale Investments, a digital asset management company that currently has over $ 9.8 billion in assets under management, the coronavirus pandemic could be a major driver of Bitcoin’s current rally.

According to the company’s annual survey, 83% of all Bitcoin investors started in the past 12 months when COVID-19 infections were minimal.

38% of all Bitcoin investors currently surveyed have joined in the past four months, and 63% say the economic disruption caused by COVID-19 has positively influenced their decision to buy BTC.

Bitcoin is becoming mainstream

Grayscale’s survey also shows that Bitcoin is becoming more mainstream among the public and the investor class. The outlook for those who have not yet invested in Bitcoin has changed significantly since 2019. In 2020, 55% of investors surveyed showed interest in acquiring Bitcoin, a significant increase from 36% in 2019.

Almost half of those surveyed believe that cryptocurrencies will be a common medium of exchange by the end of the decade.

The trend for investors to be drawn to the Bitcoin store of value narrative is likely to increase, and it is possible that mainstream adoption will come sooner than most experts and investors anticipated. Minimal evidence of this is a recent report by Citibank in which the author estimates that Bitcoin price could reach $ 318,000 by December 2021.