2023-12-06 10:06:34
As institutional interest in BTC PRICE grows, the Fidelity and BlackRock-backed Bitcoin ETF is facing an unexpected obstacle: the crypto market is not letting go of the coin easily. Is bitcoin on its way to 60,000? According to value investor and board member Mike Alfred, the market “probably won’t allow” BlackRock to buy BTC below $60,000. On December 4th on X, Alfred said that BlackRock and other Wall Street players interested in getting into the Bitcoin ETF business “should buy at least $60,000 to make the boomer 401k plans happen.” This view stems from rapidly growing demand among institutional investors. As the number of players on Wall Street shows, most of them are willing to issue complex derivatives. They do this for, among other things, “baby boomer” investors, most of whom are “close to retirement”. With their significant retirement savings, baby boomers are increasingly realizing the potential of BTC, such as inflation protection and value preservation. In 2021, following central bank intervention during the COVID-19 pandemic, inflation rose to a multi-year level. In order to preserve purchasing power, the central bank started raising interest rates. Although inflation has decreased and the economy has stabilized, it is still higher than the 2% target. The Fed can intervene by raising interest rates further to reduce inflation. This can affect the price of Bitcoin, as we have seen in recent months. However, the potential influx of boomer money through a derivatives product approved by the SEC (Securities and Exchange Commission) and CFTC (Commodity Futures Trading Commission) will give the ecosystem a big boost. The SEC has not yet authorized Bitcoin ETFs. The market expects the regulator to give the green light to the first product in the coming weeks. BlackRock et al buy BTC at a premium Ahead of this landmark development in Bitcoin and the crypto market, Alfred believes that BlackRock, Fidelity and others will not underwrite Bitcoin at spot rates. Instead, the market expects BlackRock, one of the world’s largest digital asset managers, to buy at “over $60,000 every two weeks.” The coin is trading at April 2022 levels and surged above $40,000 over the weekend as bulls intensified. Looking at BTC’s candlestick pattern on the daily chart, the first clear resistance is around $48,000. Bitcoin is trading in a bullish breakout formation following rising above $32,000. As the SEC approves the first tranche of spot Bitcoin ETFs, the coin is likely to rise further towards an all-time high of around $70,000.
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