Bitcoin rally to smash through former highest price as ‘the whole industry piles in’ | City & Business | Finance

The world’s pre-eminent cryptocurrency has rallied recently, partly because of market volatility, but more importantly because of growing adoption by global money managers, institutions, family offices, and hedge funds. Influential US hedge fund manager Paul Tudor Jones has now announced he is investing in bitcoin, saying it has a lot of the characteristics of early tech companies. Speaking to CNN he compared the to “investing in Steve Jobs or Apple, or investing in Google early”.

Billionaire investor Stan Druckenmiller has also turned bitcoin bull, pointing to US West Coast tech money as being interested in bitcoin as a reserve asset.

Now institutional investors view bitcoin as a digital alternative to gold, with JP Morgan saying institutions are ditching gold ETFs in favour of the cryptocurrency.

Speaking to Max Keiser said: “Once Paul Tudor Jones started buying bitcoin it triggered interest in every money manager, institution, family office, and hedge fund.

“He is the alpha dog in the industry that everyone follows.

“As bitcoin goes up and his performance beats the competition the whole industry will begin to pile in to try and catch up with Paul Tudor Jones.

“Same with Stan Druckenmiller, as trillions of dollars simply follow whatever he does.

“There’s $100 trillion in actively managed global wealth that is eligible to start buying bitcoin

“If only 5 percent of that money goes into bitcoin the price would jump to approx $400,000 per bitcoin.

READ: Bitcoin prices surge to over $10,000 as investors ditch other cryptocurrencies

“I think, in such circumstances, it is natural for people to look at crypto as a way for them to store their value.”

Driving up confidence in the cryptocurrency is the involvement of Michael Saylor, CEO of Micro Strategy.

Mr Keiser explained that Mr Saylor “put $425 million (£323 million) of his company’s cash into bitcoin at around $10,000 (£7,600) per coin, this has already gone up 50 percent”.

Mr Saylor calls Max Keiser “the high priest of bitcoin”.

Mr Keiser has been preaching the bitcoin message since 2011 when the price of each coin was only $1 (76p).

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