Bitcoin Back Above $40K as Institutions Lead the Way

BTC is back within striking distance of its all-time high set early last month.

Feb 6, 2021 at 2:10 p.m. UTC

The price of bitcoin (BTC) rose above $40,000 Saturday as the leading cryptocurrency has nearly regained all its losses suffered since reaching an all-time high in early January.

BTC hit $40,538.66 before falling back to $40,272.56, up 4.91% in the last 24 hours, putting it back within striking distance of the all-time high of $41.962.36 set on Jan. 8.
After hitting that high-water mark, BTC lost nearly a third (31.25%) of its value and all its spectacular year-to-date gains, bottoming out at $28,845.31 on Jan. 22.
After moving sideways for a week or so, over the last seven days BTC has made a string of upward moves, culminating in today’s rise. Year-to-date BTC’s gain is 36.91% and it’s up 39.72% from Jan. 22.
Helping to drive this latest run is fresh interest on the part of institutional money such as Ray Dalio’s Bridgewater Associates, which manages $150 billion in investor money, and the Miller Opportunity Trust. It may also be getting a boost from MicroStrategy’s WORLD.NOW BTC-themed conference this past week.
“Bridgewater’s piece out last week had a sensitivity analysis which showed their estimates of BTC price, should private holders of gold switch to BTC,” states a weekly investor note Friday from quantitative trading firm QCP Capital.
“They forecasted that should 50% of capital in gold move into BTC, that would result in a price of $85,000 per 1 BTC.”