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Institutional Investors Are Behind Bitcoin Bullish Run

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Bitcoin Jumps on Rising Capital Inflow from Institutional Investors

Several asset management companies are now favouring Bitcoin to traditional assets, according to numerous reports from exchanges and people familiar with large hard to track transactions in the unregulated digital asset.

Christopher Wood, global head of equity strategy at Jefferies, said he is trimming down gold exposure by 5 percent in favour of Bitcoin for the first time in several years.

In a weekly note, Greed and Fear, to investors, Wood Said “The 50 per cent weight in physical gold bullion in the portfolio will be reduced for the first time in several years by five percentage points with the money invested in Bitcoin. If there is a big drawdown in bitcoin from the current level, after the historic breakout above the $20,000 level, the intention will be to add to this position.”

Similarly, Ruffer Investment has purchased bitcoin worth over $745 million through River Digital, the company that helped with the purchases via Coinbase in November.

In a recent update, Ruffer hints at the involvement of “world’s largest custodian of digital assets” without naming names. “Access to the bitcoin is controlled by multi-layer security protocols,” it stated. However, a second source claimed the custodian described in Ruffer’s portfolio update was Coinbase. Coinbase Custody presently stores over $20 billion in customer assets.

On a fundamental level, Bitcoin’s growth is largely attributed to how it is designed and in May 2020, we witnessed third halving, a supply shock event, where the number of daily mined Bitcoin gets cut in half. In the previous two halvings, Bitcoin and overall crypto market cap has risen exponentially, and we are witnessing a start of similar bull trend,” explains Sumit Gupta, co-founder and chief executive officer at CoinDCX.

The revelation explained how large investors are taking advantage of bitcoin through trusted partners. Big bets in recent weeks by everyone from MassMutual to Guggenheim are seen as the driving force behind bitcoin’s current price rally.

Bitcoin price rose above $24,000 per coin on Saturday before pulling back to $22,770 per coin on Monday during London trading session.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Binance CEO Forecasts Bitcoin Surge Beyond $80,000 on Institutional Inflows

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Binance Chief Executive Officer Richard Teng has set his sights on Bitcoin surging beyond the $80,000 price level on the back of rising institutional investments into crypto-backed exchange-traded funds (ETFs).

Speaking at an event in Bangkok on Sunday, Teng highlighted the significant impact of the launch of Bitcoin ETFs in the United States earlier this year.

He noted that this development has attracted a considerable influx of institutional investors, propelling fresh funds into the cryptocurrency market.

Teng expressed confidence in Bitcoin’s upward trajectory, emphasizing that “we’re just getting started.”

Initially estimating Bitcoin to reach around $80,000 by the end of the year, Teng now believes that the cryptocurrency’s price will surpass this milestone.

He attributed this bullish outlook to a combination of decreasing supply and sustained demand within the market.

However, he cautioned that the rally wouldn’t be without its fluctuations, suggesting that the market’s ups and downs would ultimately benefit its overall health.

Bitcoin has already surged by an impressive 56% this year, reaching a record high of nearly $73,798 last week.

Despite concerns among some investors about a potential bubble, Teng remains optimistic about Bitcoin’s future trajectory.

Teng’s forecast comes in the wake of his appointment as CEO of Binance, succeeding co-founder Changpeng Zhao in November following the company’s $4.3 billion settlement with US authorities.

With relentless inflows into US spot Bitcoin ETFs since their approval in January, Teng expects further institutional adoption in the near term, with more endowments and family offices anticipated to increase their allocations into Bitcoin ETFs.

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Bitcoin Retreats from Record Highs Amid Debate Over Market Speculation

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The cryptocurrency retreated from its recent record highs, igniting a debate over the speculative fervor gripping global markets.

In Asian trading on Friday, Bitcoin plummeted by as much as 5.6%, shedding its gains from the previous day when it reached a new pinnacle of nearly $73,798.

Despite recovering slightly to trade at $67,300, the retreat has triggered concerns about the sustainability of the crypto bull run.

The moderation in Bitcoin’s surge, alongside a similar trend in other top cryptocurrencies like Ether, BNB, and Solana, reflects a broader shift in investor sentiment.

With both Bitcoin’s ascent and the performance of the top 100 tokens hovering around 60% for the year, market participants are reevaluating their risk appetites amidst a backdrop of escalating inflationary pressures.

In a Bloomberg Television interview, Bank of America Corp.’s Chief Investment Strategist Michael Hartnett sounded alarms, likening the market’s euphoria to the characteristics of a bubble, particularly evident in the technology sector’s “Magnificent Seven” stocks and the soaring highs of cryptocurrencies.

The debate over market speculation is gaining traction on Wall Street, with questions looming about the vulnerability of various asset classes to a potential pullback.

Proponents of Bitcoin point to fundamental supports, such as significant net inflows into US exchange-traded funds and an impending reduction in token supply growth.

However, Bitcoin’s stumble coincided with a surge in US yields and the dollar following a report revealing a spike in producer prices, exacerbating concerns about the Federal Reserve’s ongoing efforts to rein in inflation.

Also, data from Coinglass indicates a rise in caution within the derivatives market, with a notable increase in liquidated bullish crypto wagers and a slump in funding rates for Bitcoin perpetual futures, favored by speculators.

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BTC Rally Surges 70% in 2024, But Millionaire Creation Slows Compared to Previous Uptrends

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Bitcoin (BTC), the world’s most dominant cryptocurrency, has sustained its rally in 2024, surging by 70% to new record highs above $72,000.

This year’s rally marks another milestone for the leading cryptocurrency following a 155% surge in the previous year from the depths of a bear market.

However, despite the surge in prices, the creation of new Bitcoin millionaires has slowed compared to previous uptrends.

According to data tracked by Paris-based Kaiko, less than 2,000 millionaire wallets, defined as wallets holding $1 million worth of Bitcoin, are being created daily.

This figure is lower than during the last bull run, where over 4,000 millionaire wallets were created daily, along with more than 2,000 wallets holding $10 million balances.

Analysts suggest several factors contributing to this slowdown.

Firstly, new capital may have yet to fully enter the market. Also, large investors, known as whales, may be taking profits as Bitcoin reaches new highs.

Another factor could be that whales are storing their holdings with custodians rather than in personal wallets.

Despite the slower growth rate of new millionaires, market consensus remains optimistic about Bitcoin’s future trajectory.

With Wall Street’s increasing embrace of Bitcoin, particularly through spot exchange-traded funds (ETFs), many believe that the bull run is still in its early stages.

Continued inflows into ETFs, combined with the anticipated supply reduction from the upcoming halving event, could drive prices even higher. Some analysts predict that Bitcoin could reach $150,000 and beyond in the coming months.

However, signs of caution emerge as the gap between liquidity on the buy and sell sides widens, suggesting that investors may be looking to take profits near record highs.

The overall sentiment in the cryptocurrency market remains bullish, with Bitcoin’s rally showing resilience and strength in the face of market dynamics.

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