Bitcoin has rallied into fresh all-time highs above $56,400, raising the market cap above $1 trillion for the first time.
Bitcoin’s late 2020 rally seemed to be sparked by an unprecedented surge of demand from institutions and billionaires, with the trend set after the world’s biggest publicly traded business intelligence firm, MicroStrategy, announced it had transferred $250 million of its treasury into BTC on August 11.
According to cointelegraph.com, at the end of January 2021, MicroStrategy had spent $1,095 billion to accumulate 71,079 BTC or 0.38% of Bitcoin’s circulating stocks. At the beginning of February, the company held a free webinar offering techniques for the incorporation of Bitcoin into corporate treasury reserves, and MicroStrategy is reportedly investing further $900M to purchase more BTC.
Institutional asset manager Grayscale has aggressively expanded its bitcoin accumulation in 2020 with its bitcoin trust announcing an 872 percent rise in assets under management from $1.8 billion at the start of the year to $17.5 billion at the beginning of January. To date, Grayscale has bought Bitcoin at a rate that is quicker than the creation of a new BTC supply.
On February 8, news that Tesla CEO Elon Musk had spent $1.5 billion or 7.7 percent of the electric vehicle treasury in BTC sent the Bitcoin price up to a new all-time high above $43,000.
And the bullish institutional news just keeps coming, with reports that Twitter may become the next big corporation to incorporate bitcoin to the balance sheet, and mega banks including BNY Mellon and Deutsche Bank are announcing moves to launch BTC custody services. Significant funds like BlackRock and Morgan Stanley are debating whether an investment in Bitcoin is warranted.