The analytics firm goes on to say that macro uncertainty is the main driver behind this change. With the on-going panic situation, institutions are forced into looking at alternatives, such as Bitcoin, to hedge against deteriorating economic conditions.
Institutions Look to Bitcoin as a Result of Macro Uncertainty
Chainalysis quotes billionaire investor Paul Tudor Jones who spoke about his concerns with the central banks’ money printing policy.
“Back in March and April, it became really apparent, given the monetary policy that was being pursued by the Fed, the incredible quantitative easing they were doing and other central banks were doing, that we were in an unprecedented time…one had to begin to think about how you defend yourself against inflation.”
Tudor Jones isn’t the only one voicing unease with the macro picture. The past few months have seen a cascade of high profile figures lending their support to Bitcoin during these precarious times.
Perhaps most notable is Michael Saylor, whose firm MicroStrategy became the first listed company to buy Bitcoin.
Back in September, Saylor spoke publically about his fear of holding cash, in that, as a cash-rich firm, MicroStrategy’s exposure to inflation was too much of a risk for him.
“First I have a mega, mega, mega problem, and the problem is I have a lot of cash and I’m watching it melt away… [On investors] they’re smarter than I am, I’m not joking, I’m being serious, they are smarter than I am. They knew before I knew that cash is trash, and you’re a fool to sit on the cash.”
By converting that cash into Bitcoin, Saylor said he feels more confident about the future of the firm.