Leading players are pumping (such as Semler Scientific) big money into Bitcoin in the U.S. presidential election run-up, which is seen as a vote of confidence in the cryptocurrency despite continuing market volatility. New institutional buying is coming just as uncertainty in financial markets around the election piques the interest of many in alternative assets.
One of the firms is Semler Scientific, a health technology-focused company. That firm only recently purchased 47 BTCs for $3 million, adding it to acquire more Bitcoin. It is currently taking its total holding of BTC to 1,058 worth around $71 million. Other firms, however, are now applying debt or even equity issuances to buy crypto. However, the case of Semler Scientific’s Bitcoin purchases go directly through operating cash flows, indicating high financial confidence in long-term Bitcoin moves.
The company Chairman, Eric Semler, says that in this accumulation strategy, Semler is committed to investing to maximize shareholder value. With an average monthly purchase of 40-50 BTC, Semler has been using cash flow to build its crypto portfolio instead of opting for traditional market investments.
Another indication of this trend is the flagship UK pension fund which, based on various reports, has set aside 3% of its portfolio for Bitcoin. This sort of allocation represents the ever-growing portion of institutional investor acceptance of cryptocurrency as an economic hedge against economic uncertainty. As such, even the most conservative investors can now count on Bitcoin as a haven in diversified portfolio strategies in times of uncertain economics.
Presently, Bitcoin is trading at a level of $67,500 and $73,600. Analysts consider it a possibility of even higher fluctuations in value around the election date, not to mention an increase because of growing investors’ psychology. For one, it is also witnessed that these institutional investments indicated rising demand for Bitcoins as an investment product as we are inching closer to an election amidst volatile financial situations today.
With institutional investment flooding in, observers think that Bitcoin will be one of the significant players in this market, even during short periods of volatility.
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Salaar Shah