Investors Haven’t Stopped Buying BTC Despite Crypto Market Doubt

The latest bitcoin dilemma, which began on September 13 when the US Federal Reserve announced the CPI report, has left retail investors at a disadvantage.

The recent announcement of a 75 basis point interest rate hike by the Fed also had an impact on the market. The instability in the broader financial environment has trickled down to the cryptocurrency market.

The news caused BTC to drop below the critical $20,000 mark. Despite regular investors trying to get out of Bitcoin out of fear, new analyzes show that major institutions are still investing heavily in Bitcoin.

As of this writing, BTC is trading at $20,215up 5.6% in the past seven days, according to data from Coingecko.

Bitcoin – An excellent choice for the future

New York Digital Investment Group (NYDIG) recently disclosed in an SEC filing that it has raised approximately $720 million to invest in Bitcoin. The fund attracted 59 investors, according to the SEC.

Although the names of the investors have not been disclosed, we could conclude that the limited number of investors and the total amount raised are wealthy individuals or huge corporations looking to diversify their holdings.

Image: CNBC

The NYDIG team has faced similar challenges before. With a market capitalization of $7 billion, NYDIG is valued at an all-time high after making over $1 billion in revenue last year. WestCap led the funding round that propelled NYDIG to success the previous year.

Many financial market titans like Morgan Stanley and Mass Mutual participated in the investment round.

This indicates a growing institutional interest in cryptocurrencies, especially Bitcoin.

How does this affect Bitcoin?

As of this writing, BTC has broken above the psychological support level of $20,000. This may be a result of recent advancements in the Bitcoin institutional investment industry.

Although it will take a considerable amount of time before a broad rebound erases the September 13 losses, the price will undoubtedly rise.

However, Bitcoin investors and traders should not be too optimistic. We can expect NYDIG to buy the crypto in lots, which will help the bulls in the long run.

Indicators are also pointing to near-term gains, with the Fear and Greed Index bullish.

It is a positive indicator, but it sends sell signals to those who wish to liquidate their holdings. If Bitcoin can consolidate at the 61.80 Fibonacci retracement level, this will provide support for the next rally.

The real increase, however, comes from an increase in retail investor confidence, as most consumers will view the financial giants’ investment in Bitcoin as a cue to invest in cryptocurrency.

BTCUSD pair regaining some lost ground, trading at $20,225 on the daily chart | Source: TradingView.com

Featured image from Forbes, Chart: TradingView.com

Robert D. Coleman