Hedge Funds Increasingly Active In Bitcoin

While the bitcoin bull run in 2017 was largely driven by retail investors, the 2020 surge appeared to be driven by a wider set of investors, including institutionals. In addition to retail investors, family-offices and high-net-worth investors remain dominant investors and sources of new bitcoin wallets and IP addresses. Bitcoin benefitted from a supportive backdrop, increasingly used as a hedge against falling real yields and massive central banks QE, which are feared to ultimately debase world currencies and boost inflation. It is also an alternative to declining equity dividend yield. Unsurprisingly, bitcoin’s correlation with gold and inflation, and to some extent equities, has become reasonably stable.