The total amount of money that entered Bitcoin already exceeds the entire market value of cryptocurrency in 2017. The assessment was carried out by Rafael Schultze-Kraft, co-founder and CTO of Glassnode.
In his Twitter, Schultze-Kraft said that cash inflows into Bitcoin reached $ 70 billion ($ 350 billion at the current price) in January.
The value may seem “low”, but it has a big milestone. This influx is equivalent to the entire market value of Bitcoin on September 28, 2017. At the time, it was at $ 68 billion (R $ 216 billion at the time).
Euphoria in 2017 became routine in 2021
In 2017, Bitcoin prices rose dramatically in a span of just three months, reaching almost $ 20,000 in December. This record was only broken almost 3 years later, in November 2020.
For Glassnode, there are some differences between the 2017 high and the current high. That year, the valuation was led by small investors, enthusiasts with a lot of passion, but little money.
Now, Glassnode data indicates increased institutional interest in Bitcoin. More and more companies, funds and investors are seeking exposure to cryptocurrency.
In recent months, these institutions have injected billions of dollars into Bitcoin. Many of them even used cryptocurrency as part of their cash, like MicroStrategy.
Other investors see Bitcoin as a hedge against the loss of the dollar’s value. This is the case of billionaire Stanley Druckenmiller, who changed his position and bought Bitcoin for that purpose.
In late 2020, Bitcoin reached a new historic high, this time close to $ 42,000. In Brazil, cryptocurrency even surpassed R $ 220 thousand. This increase was driven by large investors.
For many analysts, this made this new bullish rally more sustainable. Even skeptics, like billionaire Ray Dalio, have begun to see value in Bitcoin as an investment.
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