Bitcoin price shattered all previous records and reached $23,000 today as institutional adoption sparked Fear of missing out (FOMO) among investors. Bitcoin millionaires have reached a record high of 66,540 as the recent BTC price jump has turned all mining addresses with 50 BTC into millionaires.
According to the data provided by crypto analytics and on-chain analysis provider, Glassnode, Bitcoin addresses with at least $1 million increased 150% to reach 66,540 due to a significant jump in BTC Price.
Institutional investors including leading Wall Street financial firms acquired a large number of Bitcoins in the recent weeks. Finance Magnates earlier reported that one of the leading investment firms, Guggenheim Partners filed an amendment with the SEC to seek 10% investment exposure in Grayscale Bitcoin Trust.
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MassMutual, a leading life insurance company in the US announced earlier this month that the financial firm has bought around 5,600 Bitcoin in an effort to diversify its investment portfolio. JPMorgan mentioned in a research note to the investors that the bank is expecting a $600 billion Bitcoin demand in the coming years.
BTC Price and Weak USD
As of writing the value of the US Dollar has reached its lowest level since March 2018. A dip in the USD is another major reason for the recent spike in BTC price as institutional investors are using Bitcoin as an inflationary hedge against other financial assets. Morgan Stanley’s Head of Emerging Markets and Chief Global Strategist, Ruchir Sharma mentioned in an article in the Financial Times that Bitcoin has the potential to replace the US Dollar. Furthermore, he added that the recent boom in cryptocurrencies should serve as a warning to government money printers around the world, and relevant authorities must not assume that the traditional currencies like US Dollar or Euro are the only stores of value or mediums of exchange that people will trust forever.
Ripple CEO, Brad Garlinghouse said in an interview that many people treat digital assets as an inflationary hedge against traditional assets.