2023-06-24 06:14:47
In recent days, the BTC exchange rate has strengthened by 20% on the news of new bitcoin spot ETF requests. The positive reaction of the market is no accident: if the largest banks and fund managers enter the bitcoin market, a race to accumulate BTC will begin, which can have a huge price-inflating effect. Routine crypto enthusiasts can feel back in 2018-19, when everyone waited with bated breath for the various bitcoin ETFs to be judged and the eventual launch of BTC. These attempts have usually been unsuccessful, but now the world’s most influential financial institutions are getting involved, and it’s hard to imagine that they too will be easily snapped up by the SEC. Fidelity, Invesco, Wisdom Tree and Valkyrie immediately took on investment giant BlackRock as soon as the latter filed its application to launch a BTC spot ETF with the US Securities and Exchange Commission. On the positive news, the price of bitcoin increased by 19% compared to the beginning of June, up to $30,240. According to Cameron Winklevoss, co-founder of the Gemini crypto exchange, a “big hoarding” of bitcoin by institutional and retail investors has begun. Winklevoss urges people to buy bitcoin before ETFs go public because he believes the floodgates to good entrants are regarding to close. Michael Saylor, Executive Chairman of MicroStrategy, also indicated that due to the growing institutional demand, retail investors may soon be forced out: “The period when you can overtake institutional investors on crypto exchanges will soon come to an end.” BTC is currently trading at almost $31,000 at the time of writing, and the Crypto Fear and Greed index has risen from 49 to 65 in recent days. Bitcoin investor and opinion leader Anthony Pompliano told CNBC in response to the events of the past few days that a tug-of-war between retail investors and Wall Street might soon begin. According to Pomp, since there will only be 21 million BTC in circulation, there will be a great scramble to acquire this finite supply. Retail investors have a 15-year head start and have been the only ones to access the market until now, not to mention that 68% of all bitcoins mined so far haven’t changed hands in the past year. Later, he posted the following tweet on the subject: “BlackRock appears and bitcoin goes up 20% in a week. People forget that bitcoin went from nothing to a $1 trillion market cap with negligible institutional involvement. If retail investors were able to get BTC to $1 trillion, what do you think will happen if institutions open their stuffed wallets as well?” According to Dylan LeClair, BTC analyst and founder of 21st Paradigm, the BTC supply side is extremely inelastic right now due to recent ETF announcements that are bringing a large amount of new capital into the market.
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