Bitcoin has seen strong gains over the past seven days. According to CoinGecko, the leading digital asset is up 16% in the past seven days, outperforming Ethereum and a number of other digital assets.
Despite this sharp rebound in prices for the leading digital asset, analysts expect further gains in the coming weeks.
Here are some reasons this sentiment has been shared about Bitcoin.
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# 1: Bitcoin is experiencing strong corporate demand
Bitcoin is in high demand from players like MicroStrategy and other companies.
Just last week, the corporate services company announced that it would raise nearly $ 1 billion to buy Bitcoin by selling corporate bonds. The company announced on the subject:
MicroStrategy® Incorporated (Nasdaq: MSTR) (“MicroStrategy”) today announced the pricing of its $ 900 million offering for a total of 0% principal of the convertible senior notes due in 2027 (the “Notes”). The Notes will be sold in a private offering to qualified institutional buyers. MicroStrategy intends to use the net proceeds from the sale of the Notes to purchase additional Bitcoin. “
This sale is expected to end in the coming week. Should the sale be successful, the proceeds will be “TWAPped” into the Bitcoin market, which represents a significant increase in demand for the leading digital asset.
MicroStrategy announces pricing for the convertible bond offering. $ MSTRhttps: //t.co/jjyklHpXzp
– Michael Saylor (@michael_saylor) February 17, 2021
Other companies like Twitter are also considering buying Bitcoin to hedge their balance sheets against the inflationary effects that are depressing the US dollar.
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# 2: Inflows likely to increase with depot solutions
There are prominent investment banks and institutional players working on institutional custody solutions that should drive demand for Bitcoin and other digital assets.
The Wall Street Journal reports that the Bank of New York MellonCorp., The country’s oldest bank, is working on a digital asset custody solution.
The company announced last week that it was working on a system that would allow it to “hold, transfer and spend” Bitcoin and other digital assets.
The company’s executives are seeing increasing demand for Bitcoin and other digital assets.
BNY Mellon’s offering will be unique in that both retail and institutional investors can access the custody of digital and traditional assets on Wall Street through a broker, which can lower the barrier to entry for potential investors.
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Featured Image from TradingView.com’s Unsplash Chart Price Tags: xbtusd, btcusd, btcusdt 2 main reasons Bitcoin bulls expect more benefits
