2 Key Reasons Why Bitcoin Bulls Expect Further Upside

2 Key Reasons Why Bitcoin Bulls Expect Further Upside

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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 strong rally in the price of the leading digital asset, analysts are expecting further gains in the weeks ahead.

Here are a few reasons why this sentiment has been shared about Bitcoin.

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#1: Bitcoin Is Seeing Strong Corporate Demand

Bitcoin is seeing strong demand from players like MicroStrategy and other corporate players.

Just this past week, it was revealed by the business services company that it will be raising nearly $1 billion to buy Bitcoin through the sale of corporate bonds. The firm announced on the matter:

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Other corporations such as Twitter are also looking into purchasing Bitcoin to hedge their balance sheets against the inflationary effects depressing the U.S. dollar.

#2: Inflows Likely to Increase With Custody Solutions

There are prominent investment banks and institutional players that are working on institutional custody solutions that are likely to drive demand for Bitcoin and other digital assets.

As reported by The Wall Street Journal, Bank of New York MellonCorp., the nation’s oldest bank, is working on a digital asset custody solution.

The firm said last week that it is working on a system that will allow it to “hold, transfer and issue bitcoin” and other digital assets.

The firm’s executives see that there is an increasing amount of demand for Bitcoin and other digital assets.

BNY Mellon’s offering will be unique in that both retail and institutional players will be able to access Wall Street-grade custody for both digital assets and traditional assets through one broker, which may lower the barrier to entry for prospective investors.

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