Institutional investors prefer ETH, and bitcoin rises again due to Elon Musk
Institutional investors prefer ETH
According to CoinShares, the inflow of institutional investors’ funds into the crypto market in the first week of the second month of the year amounted to $245 million. 80% of this volume was invested in ethereum.
Analysts believe large investors are starting to diversify their crypto portfolios. They transfer part of the funds from BTC to ethereum, and other coins. At the same time, nothing indicates profit-taking. Investors buy and save cryptocurrency.
“We think that investors looking for diversification are becoming more comfortable investing in ethereum. The inflow of funds into bitcoin is gradually decreasing, ” analysts noted.
Bitcoin tested the $48,000 level
The main crypto coin has updated the all-time high on the Binance crypto platform. It has risen above $48,000. During the day, the coin grew by 23%. Its market capitalization exceeded $892 billion.
The value of BTC is breaking records amid news that Tesla has invested $1.5 billion in bitcoin. Representatives of the company said that in the “near future” it will accept payment in cryptocurrency.
Well-known trader Peter Brandt wrote that despite the hype around digital gold, the uptrend in price “looks healthy compared to the end of 2017”.
Brian Brooks: Tesla’s investment in bitcoin is awesome news
Former head of the Office of the Comptroller of the Currency, Brian Brooks said the information about Tesla’s investment in BTC is exciting news.
Although, the ex-official believes, for those who have not previously invested in cryptocurrency, “it looks somewhat alarming.”
“That’s crazy, right? The way inflation works is the more of asset you have the less valuable it is. That would explain why a lot of institutions want to have bitcoin sitting in their treasury because it’s a lot more stable source of value over the long haul, potentially, ” Brooks said