The US Federal Reserve announced earlier in the month that it would undertake any measures required to bring the economy back on track. The $1.2 trillion incentive stimulus entitled all US citizens with $1,200 deposited directly into their bank accounts.
The decline in the US benchmark indices proved to be a boon for Bitcoin as investors started moving out of the equity markets. With hedge managers and acclaimed investors claiming BTCUSD to be a hedge against deflation, more investors started investing in BTC.
Funds managing Bitcoins rise exponentially this year
Data shows that the number of funds applying to the SEC for approval has increased significantly since the beginning of the year.
Grayscale is a fund dealing in various types of Cryptocurrencies such as Bitcoin, Ethereum, Ripple, Litecoin, Bitcoin Cash. Its Managing Director claims that the AUM or Assets-under-management grew considerably in portion this year.
Several people who received the $1,200 incentive had put that money into investments in BTCUSD.
Why are investments in BTCUSD on the rise despite declines:
The best time to invest in any market is when the market is not greedy. Currently, with BTCUSD declining around 7% in the past two days, a lot of swing buyers would have exited.
One essential aspect to keep in mind is that Bitcoin and most other cryptos are at a nascent stage. But there is no doubt that they are disruptive and a revolution in the field of finance and technology.
Therefore, one should have a long term vision in mind before making any investments in BTCUSD. If we look at the weekly chart, we can see that over an extended period, BTCUSD has risen steadily.