First Mover: Bitcoin Attracting More Buyers, Even With Market Stuck in ‘Extreme Fear’

Bitcoiners are abuzz over new data showing more people might be tiptoeing into the market.

Mass adoption has long been one of the main bullish investment theses for bitcoin. The bet is growing numbers of institutions and individuals will eventually come to understand the cryptocurrency’s virtues, from its potential use as a peer-to-peer payment system to its potential as a hedge against inflation, like a digital version of gold. As the newbies pile in, prices will soar, the theory goes.

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Brian Armstrong, CEO of the major cryptocurrency exchange Coinbase, tweeted last week the frequency of deposits in the amount of $1,200 had jumped – a hint some recipients of coronavirus relief checks from the U.S. government might even be using the funds to buy cryptocurrencies.

The following chart from CoinDesk Research (using data from Coin Metrics) also shows a surge in addresses holding less than a billionth of the total supply of bitcoin, or those holding roughly $130 or less at current price levels.

2020-04-20-13-30-48
Source: TradingView

Any increase in bitcoin’s popularity among retail investors might dovetail with signals that institutional investors are getting into the market, too. Renaissance Technologies, one of the world’s biggest hedge funds with $166 billion under management, said in a regulatory filing that its market-beating Medallion fund can now trade bitcoin futures on CME Group’s Chicago Mercantile Exchange.

And last week, cryptocurrency-focused investment firm Grayscale said it raised $503.7 million in the first quarter, nearly double the previous quarterly high. The firm, which is controlled by Digital Currency…

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