Bitcoin Smashes Past $18K, Mexico's 2nd Richest Man Puts 10% of Liquid Cash in Bitcoin

18. Nov 2020 Posted by Akolkar B on News

Bitcoin (BTC) price has moved past $18,000 hitting its new 2020-high and closing the gap with the all-time high levels. Just over the last two days, BTC has added $2000 to its price as the world’s largest cryptocurrency gains over 15%.

At press time, Bitcoin (BTC) is trading at $18,046 with a market cap of $334 billion. Over the last month, BTC has added $6000 moving all the way from under $12K to the current levels.

The Bitcoin rally looks pretty strong at this point driven by huge institutional participation. The assets under management for the Grayscale Bitcoin Trust (GBTC) also moves past $9 billion. Recently, Grayscale clocked a new milestone of having over half-a-million Bitcoins under its Bitcoin Trust investment instrument.

Bitcoin continues to attract veteran investors and billionaires from all across the world. Mexican billionaire and the country’s second richest man Ricardo Salinas Pliego recently pledged 10% of his liquid portfolio into Bitcoin.

The latest revelation comes as Pliego was responding to his followers. In a response tweet (translated) the billionaire investor wrote: “Today I recommend THE BITCOIN PATTERN, this book is the best and most important to understand Bitcoin. Bitcoin protects the citizen from government expropriation. Many people ask me if I have Bitcoins, YES. I have 10% of my liquid portfolio invested.”

However, the other 90% is still tied up to precious metal miners. In one of his tweets, Pliego has also criticized government-issued fiat saying that they are “worth nothing”. He further added that its always good to diversify investments.

The Coronavirus-led economic crisis has forced central banks to pump huge stimulus in the economy to protect people from unemployment. Well, as more money enters the financial system, investors worldwide are fearing about the major rise in inflation ahead.

Thus, most of them have been looking for potential hedge instruments and Bitcoin aka Digital Gold offers the perfect use case. Some of the biggest financial institutions worldwide have started endorsing Bitcoin (BTC) publicly.

Unlike 2017, the rally this time is different as it is not merely driven by retail FOMO but instead backed with institutional money rain. We can soon expect BTC to cross $20,000 and hit new higher highs.