For example, last week, as the currency approached the $ 30,000 threshold, many experts warned investors they were ready to exert influence, indicating that major cryptocurrency assets are on the verge of collapse. correct themselves and may fluctuate again. USD 20,000 area.
However, in just one day Bitcoin started trading with longs again, retested the $ 38,500 limit, only witnessed a sell off, and eventually settled into the $ 33,500 area. For many of the cryptocurrency veterans who might be in the office for another day, others are calling the hike the “Elon candle”, and Tesla CEO Elon Musk posted on his Twitter “Bitcoin” been added and published in the CV. For 40 million Internet subscribers, the following encrypted message is “inevitable.”
Whatever the reason, recent price swings have scared institutional investors or are they still looking to buy Bitcoin? But if that is the case, it would be strange to see BTC stay in the $ 30,000-40,000 range, as there are reports that high-profile players will pick up large amounts of Bitcoin. For example, when BTC fell 15% on January 22, MicroStrategy announced another BTC buy transaction worth around $ 10 million.
Regarding this, George Donnelly, CEO of the Bitcoin Cash Panmoni transaction system, told Cointelegraph that there is no doubt that the institution still wants to buy Bitcoin:
“Grayscale is expanding to create new DeFi trusts, and people are buying shares of MicroStrategy to gain access to BTC. As retail interest seems low, BTC could stay at around 30,000. So far, this bull market does not It wasn’t as strong as the last bull market. Few seem to be happy about it. ”
In addition, he pointed out that the main reason for the failure of BTC was that the currency developers “were deliberately limiting the efficiency of the network for ideological reasons” and even trying to reduce the ecosystem by moving the field of use towards the second layer of the network. Security. Even so, he still estimates that the currency “will exceed $ 40,000” within the next three months.
Bitcoin doesn’t stop, it just adapts
In addition to the new $ 2 trillion stimulus package, due to new US President Joe Biden (Joe Biden) and the Federal Reserve (Fed), the cryptocurrency propaganda has again caused a stir, all the more so as more and more people are starting to learn more about cryptocurrency. The future impact of this uncontrolled currency printing and how to reduce the dollar to unprecedented levels.
Filipe Castro, co-founder of Utrust, a cryptocurrency e-commerce platform, told Cointelegraph that the continued expansion or dilution of the US dollar coin supply pool would sooner or later mask the impact of inflation. Growth of the US economy:
“While consumers don’t feel much inflation in goods and services, it has manifested itself in the rise in US dollar-denominated assets (such as stock market value, real estate, commodities, and crypto). currencies). Many institutions have not chosen to hold cash as a safe haven, but funds are invested accordingly. ”
He also pointed out that institutions generally do not trade directly in the market, but buy from deposit brokers, who generally guarantee the required liquidity up front to minimize the direct impact on the entry of large buyers into the market. .
What this layman is saying is that the increase in demand will be reflected asynchronously over time, and that it will have a great cyclical change, rather than the quick result of the last announcement. He added, “Therefore, any future volatility performance will take time and will occur when there is high volatility.”
Corporate interests won’t go away any time soon
While it’s easy to believe that the general interest in crypto may eventually fade, it’s important to remember that how the institutional buying cycle works is very different from the activities of individual traders and small institutions.
For example, Castro pointed out that only a few institutions, including some family offices, have a positive attitude towards Bitcoin. Additionally, it can usually take months or years to complete the process of approving new assets and risk assessments. For many traditional investors, this represents a new investment paradigm.
On this issue, Lennix Lai, Director of Financial Markets