Bitcoin has been seeing massive inflows of capital from large investors and corporations throughout 2020, which may be what has allowed its price to trade well above where it started the year – despite the turbulence seen in the early months.
There’s a strong possibility that BTC will continue gaining adoption amongst non-retail investors in 2021 as well, with the trend of it being a reserve asset only gaining traction as more companies, funds, and large investors acquire it.
Retail investors are also rapidly turning to Bitcoin to protect against the turbulence and inflation being seen throughout the globe, which is elucidated by the rapidly climbing number of new wallets with sub-1 BTC balances.
There is one often overlooked investor class that could be the next source of rocket fuel for Bitcoin: sovereign wealth funds.
One on-chain analyst explained that there is currently $8.5 trillion being managed by nations, and virtually zero has been allocated towards Bitcoin.
He contends that an optimal portfolio going forward will require it, which could mean that serious upside is right around the corner.
Bitcoin Continues Benefiting from Economic Turbulence
At the time of writing, Bitcoin is trading up over 2% at its current price of $11,800. This marks a notable upswing from its recent lows of $11,200 set during a recent selloff.
The rebound from these lows, coupled with a break above $11,800, has significantly bolstered its near-term outlook.
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