Experts note growing interest in bitcoin from Wall Street participants.
Fund managers are attracted by the volatility of bitcoin and its uncorrelation with traditional assets.
However, financial sharks should not forget about bitcoin whales..
International consortium of news organizations developing transparency standards.
Cryptocurrencies are not only attracting whales, but also such Wall Street financial sharks as hedge funds. However, this market is still dominated by a small group of large players..
Bizarre Animal Costumes: Surviving in the Wild | Free Documentary Nature
Bitcoin does it again
The bitcoin rate began to jump again. In mid-March, the cryptocurrency fell in price by half, falling to the $ 4,000 region amid panic provoked by the Covid-19 pandemic. However, the other day, the BTC jumped above the $ 11,000 mark and continues to try to gain a foothold above it..
Bitcoin veterans have seen this switch from fear to greed more than once, and they know the consequences of such rushing can be painful. Suffice it to recall the speculative bitcoin rush in 2017, which first threw the currency to historic highs, and then collapsed by 80% in 12 months, led to the closure of a number of hedge funds and a prolonged crypto winter.
Everything you need to know about Bitcoin, Crytocurrency and Investment Banking.
Large leaps in the MTC exchange rate undermine its status as a trustworthy store of value or defensive asset. Warren Buffett, who is clearly not a fan of cryptocurrencies, once called bitcoin a “fear preserver”, believing that short-term pessimism pushes investors towards this asset..
Join the discussion in our Telegram channel to keep abreast of all opinions!
Will it be different this time?
However, Bloomberg analysts stubbornly prefer to compare bitcoin with gold. In an article published today, they write that a number of major Wall Street financial players are now showing increased interest in Bitcoin. They put it on par with gold as a hedge against an inflationary spiral or currency crisis amid unprecedented liquidity injections to combat the economic fallout of the pandemic around the world..
Recently, the editorial staff of BeInCrypto already reported an example of such a parallel growth of bitcoin and gold..
In May, renowned billionaire investor Paul Tudor Jones celebrated the “scarcity premium” offered by bitcoin and revealed that 1-2% of its assets are parked in cryptocurrency to protect against ubiquitous low interest rates. Institutional interest in investing in digital assets continues to grow. It looks like the topic of insurance against financial apocalypse and printing presses has become relevant.
According to a July survey by Bank of America, 71% of fund managers think stocks are overvalued. In a market where almost everything grows, you need to be able to effectively diversify, and this is where investing in gold and bitcoin can make sense. On the one hand, BTC could repeat the dizzying rally of 2017. On the other hand, a number of experts argue that at this stage, bitcoin is weakly correlated with stocks. At the same time, its volatility increases its attractiveness in the eyes of risk-hungry hedge funds that make money precisely on sharp market surges..
Watch out for whales
However, it is in this unpredictability that bitcoin’s great danger lies. He has a tendency to behave contrary to investor expectations. The demand for military-technical cooperation remains speculative and emotional, and it is weakly tied to fundamental factors.
In addition, the volume of the circulating supply of bitcoin is decreasing not only algorithmically, but also artificially. According to the analytical company Chainalysis, about 20% of military-technical cooperation is considered “lost”, and about 60% is stored in savings. Wall Street sharks (as well as small fish like day traders) should remember that by plunging into bitcoin, they invade the territory of the “whales”, any action of which can set the entire market in motion..
At the same time, according to some Bloomberg analysts, the patience of whales may not be limitless, especially if bitcoin does not make tangible progress in practical, utilitarian application. In this case, whales can begin to gradually drain their stocks of military-technical cooperation, making a choice in favor of newer and more promising technologies..
All information contained on our website is published in good faith and objectivity, and for informational purposes only. The reader is solely responsible for any actions he takes based on the information received on our website..
Swimming in the Ocean with Whale Sharks and Manta Rays!
CONTENT More than half of the bitcoins are in stock Investors consider BTC as a long-term investment Most bitcoins are traded …
Bitcoin whales prepare to buy cryptocurrency in the downturn
CONTENTS BTC volumes on exchanges indicate that the coin is ready for a rally Data on the influx of stablecoins confirms the readiness of whales for a bullish attack …
“Bitcoin is the most profitable investment” – Kir Kelevra
CONTENTS Bitcoin Prepares for a Powerful Rally Now is the time to invest in Bitcoin Bitcoin cryptocurrency will become a defensive asset in the near future …
CONTENT The stablecoin market is growing rapidly Regulators fear losing control of the financial system Strong regulation will do more harm than good…