Reports have indicated that the current Bitcoin price pump is due to the influx of institutional investors promoted by favorable crypto development that came from Washington in the week.
Bitcoin price continued to rally in the week, and on Wednesday, it set another significant move, crossing the $55k level after several months. The asset has raked in more than 13 percent in this week alone.
In the week, the United States Securities and Exchange Commission’s Chairman, Gary Gensler, hinted that he was not planning to ban cryptocurrency. Institutional investors saw this comment as a green light to jump on cryptocurrencies.
While commenting on this, the Chief Investment Officer of Bitwise Asset Management, Hougan, friendly regulation promotes cryptocurrency bull trends, citing the result of a recent survey conducted by the firm, which found out that regulatory uncertainty holds investors back from jumping into the system.
According to Bitwise’s CIO, Hougan, “Regulatory uncertainty is what’s still keeping investors out of the market and every time we get a step closer to regulatory clarity, you see this kind of reaction.”
In the opinion of Noelle Acheson, Head of market insights at Genesis, the spike in Bitcoin price is institutional investors-driven. She added that “Institutional investors move as a herd, they are momentum chasers. When they see this kind of momentum, they start to think, what am I going to miss?” She noted investors in the sector do not like to be outperformed by their competitors.
It is worth adding that following Janet Yellen’s comments that the U.S could face recession very soon, fear has shaken up the stock market. However, Bitcoin remains unaffected. Many have begun to see the asset has an option to hedge their resources.
In the last 24hours, Bitcoin outperformed altcoins and DeFi. Currently, the asset is changing hands around $54,600.