New Grayscale Research Paints a Bright Picture for Bitcoin’s Adoption Rate

New Grayscale Research Paints a Bright Picture for Bitcoin’s Adoption Rate

According to research on cryptocurrency by Grayscale Investment, the number of US-based Bitcoin (BTC) investors is on a steep climb. The popular digital assets manager noted that the COVID-19 pandemic is largely responsible for this increase.

The 2020 research, titled “Bitcoin Investor Study,” is geared towards illustrating US investors’ perception of Bitcoin and how it has evolved over the years. That said, the growing interest is one of the key highlights of the research. Grayscale mentioned that only 36% of subjects quizzed in 2019 had an interest in Bitcoin. However, that number has grown to 55% in 2020.

Meanwhile, 83% of the subjects answered that they only made a foray into Bitcoin in the past year. One startling figure was that 38% purchased Bitcoin in the past four months. About two-thirds of this particular Bitcoin investors asserted that “the ramifications of COVID-19 were a factor in their decision to do so.”

The report also showed that Bitcoin was barrelling towards mainstream adoption, as about 62% of the 1,000 subjects indicated being familiar with the benchmark cryptocurrency. Last year, that number was just a few points above 50%.

Meanwhile, apart from the COVID-19 factor, the subjects highlighted two other factors that drew them to the cryptocurrency. First is the fact that Bitcoin has been the best-performing asset over the past decade, making it a very attractive investment for newcomers. About 80% of the subjects stated that this was their most exciting reason for joining the train.

The other reason was that Bitcoin allowed investors to start with anything they have, no matter how small.

BTCUSD -4-Hour Chart

Key BTC Levels to Watch in the Near-Term — October 27

Bitcoin continues on its bullish momentum and appears to be showing no signs of a slowdown. Over the past few hours, BTC has recorded a new YTD high around $13,769. Despite expectations of a modest pullback in the near-term, the cryptocurrency continues on its bullish journey unperturbed.

That said, a modest consolidation should ensue in the near-term before we see another major move.

Total market capital: $406 billion

Bitcoin market capital: $252 billion

Bitcoin dominance: 62%

Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.