Institutional Investors Buying Up BTC Like Crazy After Halving

gepubliceerd op by Cointele | gepubliceerd op

Both data and first-hand accounts from industry insiders indicates that an interest in Bitcoin from institutional investors is accelerating at a rapid pace.

Price is not a factorGrayscale Bitcoin Trust, or GBTC, an exchange traded vehicle backed with Bitcoins, has been growing steadily in size over the past several years.

Its holdings diminish the circulating supply of Bitcoin, as its assets are locked away in Coinbase vaults.

93 BTC, which is 17% of all the Bitcoins mined during this time period.

If this forecast comes to fruition, it will imply that GBTC will be gauging up 75% of all newly mined Bitcoins during this timeframe.

"We now have over 260 of them and we did close $10B in loans since launch. The price of BTC does not matter, what matters is volatility of prices going up and down."

It's important to note that unlike Grayscale, platforms like Celsius and BlockFi, probably do not drive the price up, as they do not take their Bitcoins out of circulation; on the contrary, they foster market liquidity.

With inefficient miners leaving the network, the remaining ones will become more profitable and will be able to sell less of their Bitcoins to sustain the operations, reducing the supply.

"You inject two trillion. Maybe they're going to have to inject more based on how the economy is. <...> A lot of money is going to get injected. And it's creating a perfect storm for Bitcoin."

"What moves price is net fiat in a net fiat out every day. Bitcoin is trading a couple billion in volume that doesn't move price."