Despite Crypto Market Suspicions, Investors Haven’t Stopped Buying BTC

The latest Bitcoin dilemma, which began on Sept. 13 when the US Federal Reserve released its CPI report, put retail investors at a disadvantage.

The recent announcement that the Fed raised interest rates by 75 basis points also impacted the market. Broader financial volatility spilled over into the cryptocurrency market.

The news sent BTC below the critical $20,000. Despite the fact that regular investors are turning away from bitcoin out of fear, the latest analysis shows that major institutions are still investing heavily in bitcoin.

As of this writing, BTC is trading at $20,215, up 5.6% over the past seven days, according to data from Coingecko.

Bitcoin – an excellent choice for the future

New York Digital Investment Group (NYDIG) recently disclosed that it has filed with the SEC that it has raised approximately $720 million to invest in Bitcoin. The fund attracted 59 of his investors, according to the SEC.

The names of the investors have not been disclosed, but the limited number of investors and the total amount raised can be concluded to be wealthy people or large corporations looking to diversify their holdings.

Image: CNBC

The NYDIG team has faced similar challenges before. His NYDIG, with a market capitalization of $7 billion, is at an all-time high after earning him over $1 billion last year alone. WestCap spearheaded the funding round that fueled his NYDIG success the year before.

Financial market giants such as Morgan Stanley and Mass Mutual participated in the investment round.

This indicates that there is growing institutional interest in cryptocurrencies, especially Bitcoin.

How will this affect Bitcoin?

As of this writing, BTC has crossed the $20,000 psychological support level. This may be a result of recent advances in Bitcoin’s institutional investment sector.

It will take quite a while for the big rally from Sept. 13 to be wiped out, but the price will undoubtedly move higher.

However, Bitcoin investors and traders should not expect too much. One might expect NYDIG to buy cryptocurrencies in bulk to help the bulls in the long term.

The indicators also show short-term gains, and the fear and greed indicators are optimistic.

Although this is a positive indicator, it sends a sell signal to those who want to liquidate their holdings. If Bitcoin can consolidate at the 61.80 Fibonacci retracement level, this will be support for the next rally.

However, it is actually being boosted by the increased confidence of retail investors, as most consumers see Bitcoin investments by financial giants as a tip for investing in cryptocurrencies.

BTCUSD pair regaining some lost ground, trading at $20,225 on the daily chart | Source: TradingView.com

Featured image from Forbes, Chart: TradingView.com