Retail Investors, Financial Advisors Re-Entering Crypto Market in India
By: Rinkesh Jha
Tags: Buy Bitcoin In India, Financial Planning, Crypto Market In India, Retail, Investors

Financial Advisors Re-Entering Crypto Market in India

To date, Bitcoin has risen by 204%. Why is the boom? Any investor will invest in bitcoins with such revenues. Should you invest? How do institutional investors invest correctly?

Bitcoin breaking over $20,000 is a milestone in a year that has undergone multiple upturns and downturns in the global marketplace, primarily because of the fact that numerous internationally-renowned investors are throwing their weight behind Bitcoin.

Institutions investing in Bitcoin

The record-breaking surge in Bitcoin over the last few weeks was driven significantly by the market participation of larger, increasing institutional investors. For a little, over a decade the blockchain has been around, but just last year started popularising major institutional investors. Bitcoin is viewed by crypto bulls as an inflation-field hedge, like gold.

Looking at this Bitcoin boom we’ve witnessed over the past few weeks and months, there are only two major guiding forces. The first is that institutional players are constantly joining. Investors such as Paul Tudor Jones and Stanley Druckenmiller have made funds available in Bitcoin and have proven its potential as a hedge against inflation.

The interest of Large Financial companies

Big and Medium Size investors showing their interest in Bitcoin Investment 2021.

Big finance firms such as PayPal and Fidelity too have made moves in the cryptocurrency, while Square and MicroStrategy like to acquire bitcoin utilizing their own balances.

Companies such as MicroStrategy and MassMutual insurers have invested in bitcoin 2021 respectively at $475 million and $100 million. Big corporations like Paypal will now access cryptography for their clients.

In various parts of the world, regulatory issues are becoming favorable. Both these advances have given consumers a great deal of faith leading to a market rally.

Re-entry of Retail investors and Financial advisors in India

Retail investors aged between 25 and 40 spend millions every day on cryptocurrency trading in India, according to two of the country’s top exchanges. The platform earns $20–25 million a day, of which about 75% are from Indian investors.

Experts predict that now that Bitcoin has reached longevity, by far the most known digital asset, the number of retail buyers will rise faster. According to Vincent Poon, an industry veteran, Bitcoin’s values could this time grow to as much as $100,000. On 30 November 2014, the world’s biggest digital asset hit an all-time high of $19,577.47.

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It had surpassed the preceding peak at $19,511 in December 2017, until 70% of its worth was lost in the next two years. Poon said that “a fear of the 100,000 price point being missing” is going to drive a lot of people to invest in Bitcoin now.

The Bitcoin bubble has generated a “positive feeling,” driving more institutional buyers into crypto-trading in India. As Bitcoin was growing, trading orders rose by 52% on 29 and 30 November. During the same period, overall volumes of crypto trading increased by 27%.

This big Bitcoin rally looks like corporations are behind it. Big, publicly-traded businesses such as Microstrategy and Square spend portions of their company. According to Arslanian, institutional investors are the second motivating progress of the new Bitcoin boom, and fear of missing.

He said far more people now have cryptocurrency accounts than ever, so it is now easier than ever to buy cryptocurrencies. The clarity in the rules, which was scarce at the time, is a major difference between this rally and that seen in 2017. He said today, most regulators worldwide have in-house cryptographic workers.

Many major financial centers have pretty good regulatory clarification on crypto markets which provides comfort, both for institutional investors and for retail investors. The current trend remains optimistic for cryptocurrency this year. Because we are seeing new investment investors coming in rather than the price of bitcoin, which we conclude has an oversized market effect.

Crypto market in India

In the past year, the trading of cryptocurrencies in India has seen abundant growth for institutional participation. Although the values of cryptocurrencies were slow to climb, the entire industry expanded by several measures.

The Andhra Pradesh Government became India’s first state to pilot blockchain technology in the field of civil supplies and land records to combat fraud and corruption.

A variety of new platforms and services have been developed lately, including conventional wealth management firms including Fidelity Investments, in the crypto-currency market, primarily for institutional investing.

Fidelity Digital Assets was launched in 2018, a separate enterprise delivering cryptocurrency holding and exchange facilities. In short, it is clear that institutions are beginning to warm up in India, where cryptocurrencies are a majorly dominant asset class.

Since technological pioneers and early adopters are still in the field, the presence of larger organizations paints a hopeful picture for the future of cryptocurrencies and blockchain technology in India.

Read Also: Buy Bitcoin in India — Step by Step guide for beginners

Crypto rally was driven by Retail investors and Financial advisors

Ethereum and Bitcoin Price graph

This is another crypto bubble close to 2017 announced by various industry “experts.” In comparison, however, the new growth is not only guided by institutional investors but also large investors, institutions, hedge funds, and more.

This includes individuals such as Paul Tudor Jones, a billionaire businessman, who buys Bitcoin for unparalleled cash printing, and companies including Massachusetts Mutual Life Insurance, which invested $ 100 million of the digital currency earlier this month.

Since the insurance firm has a comparatively limited $100 million role, a few heads were sufficient. The future need for other insurance providers in the coming years can be seen.

Scott Minerd, head of investing of Guggenheim Investments, is also a bitcoin bull with $233 billion in management funds (AUM). This is a trajectory until the end of 2020 with a value of C$1 billion.