Bitcoin Is Just Getting Started
Blockware market analysis says $40K is just the beginning. PLUS, the Ivy League buys bitcoin and a new ETH all time high!
$40K Is Only the Beginning
You heard it here… second!
I want to highlight some recent analysis from Blockware Solutions.
Who are they? Blockware provides crypto mining solutions and services. They believe that the recent bitcoin bull market is just getting started.
Institutions vs. Retail
We’ve seen the institutional interest in bitcoin continue to influence the current crypto bull market. What about retail?
Square allows individuals to buy bitcoin. PayPal introduced crypto buying and selling. Exchanges are doing great. Isn’t retail interest booming? Not yet.
According to Blockware, the retail frenzy has not begun.
“Throughout 2020, CME Bitcoin Futures volume grew steadily and continued to dwarf volumes on retail exchanges like Coinbase & Bitfinex, again illustrating that the current Bitcoin rally has been disproportionately driven by institutions.”
Retail Buyers Arrive Late
Blockware highlights that institutional money is often first to establish positions in any asset class. Bitcoin is no different.
Institutional money is dominating the crypto bull market right now. Despite our adjustment to new price normals, it’s only been a matter of months, or really weeks in a broader sense, since institutional players have entered the market.
Sure, Michael Saylor was early to act and Grayscale has been scooping up crypto like crazy, but we’re still witnessing new entrants every week.
The Institutions Are Coming!
The institutions are coming! The institutions are coming! Remember when Guggenheim called for a $400,000 bitcoin and then walked back the call, declaring it should retrace to $20,000?
Well, Guggenheim went public with their interest in buying bitcoin prior to actually buying bitcoin! They aren’t approved to buy until late January/early February according to most reports.
It appears they want a better entry price and ROI. They got ahead of themselves, pumping the market before they could buy.
Why is Guggenheim relevant here?
Because they are another institutional buyer yet to enter but who has stated clear intentions to buy bitcoin—and lots of it.
Retail comes later and we haven’t hit peak retail yet. Typically, peak retail interest signals the late stages or end of a bull market.
I highly encourage you to check out their full market analysis here.
Other key takeaways are around the “digital gold” narrative driving bullish sentiment, central bank monetary policy, and how bitcoin halving events impact the market. There’s plenty to unpack in their analysis.
Ivy League Crypto!
Harvard, Yale, and Brown have been buying bitcoin and cryptocurrency for at least a year! And it’s not just the Ivy League schools. CoinDesk mentions the University of Michigan too. And there’s others out there.
“Harvard’s is the largest university endowment with over $40 billion in assets. Yale has over $30 billion, Michigan has about $12.5 billion, while Brown holds $4.7 billion.”
These universities are major players.
Talk about even more institutional interest in bitcoin and crypto. It shouldn’t come as a surprise that universities have been adding to various crypto-related positions since 2018 in some cases.
ETH Battles All Time Highs
Last week, we mentioned that ethereum was surging. We can now say with certainty that ETH has hit new all time highs!
Institutional Interest in Ethereum
What’s behind the recent ETH rally?
Just like bitcoin, it’s institutional interest. We’ve seen that institutions are acting more conservatively regarding their crypto investments this time around.
The 2020-2021 bull market will not be defined by altcoins and ICOs like it was in 2017. With bitcoin jumping to all time highs and settling in the $30,000s, institutions are looking to the world’s second largest cryptocurrency by market cap for greater returns and promising project areas.
ETH still has a ways to go.
After hitting all time highs in the mid $1,400s, ETH retraced and is sitting in the $1,300s as of writing. We’ll revisit its price action next week.
$31,821.97—the price of bitcoin today.
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