Grayscale survey shows BTC rally driven by covid-19 pandemic. According to research from Grayscale Investments, a digital asset management company currently holding over $9.8 billion in assets under management, the coronavirus pandemic may be a main driver of Bitcoin’s current rally.
According to the company’s yearly survey, 83% of all Bitcoin investors started in the last 12 months, a time when COVID-19 infections were minimal.
38% of all current Bitcoin investors interviewed joined in the last four months, and among these, 63% say that the economic disruption caused by COVID-19 positively influenced their decision to purchase BTC.
Grayscale’s report also reveals that Bitcoin is growing in popularity with the general public and investor class. Since 2019, the outlook for those who have yet to invest in Bitcoin has altered considerably. In 2020, 55% of investors polled reported interest in purchasing Bitcoin, up from 36% in 2019, a significant rise.
Nearly half of the survey participants believe that cryptocurrencies will be regarded as mainstream mediums of exchange by the end of the decade.
The trend of investors being drawn to Bitcoin’s store-of-value narrative is likely to increase and it is probable that mainstream adoption will come faster than most pundits and investors anticipate. Minimal proof of this comes from a recent report from Citibank, in which the author estimates that Bitcoin price may reach $318,000 by December 2021.
According to Jonathan Hobbs, author of The Crypto Portfolio and a former digital asset fund manager, the effects of the pandemic will be felt long after the disease itself has been controlled.
Hobbs said, “Covid-19 was the match that lit the flame for institutional adoption. But the firewood was building up long before it. Now that the fire is burning, it will take a lot of water to put it out. When the world is finally cured of Covid-19, the economy will still be sick with debt. And central banks will continue to print money to try and inflate away those debts, like they have done since the 2008 financial crisis. This means the institutional narrative of bitcoin being an inflation hedge is likely to continue long after the pandemic is over.”
[image: Mehrnegar Dolatmand]