LIVEPetr from p-hat fund
@Petr_Hotovec
Chief Operating Officer and Main Analyst at SoftVision AI - running an AI powered algorithmic cryptocurrency trading hedge fund
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Is Bitcoin done or are we going higher?
#Bitcoin is holding strong above the old all time high. How strong is the momentum now? Can we go even higher or will a price correction happen soon? There are many factors behind the current price action. Besides the upcoming #halving (reduction of Bitcoin minersâ reward), it seems that the market is slowly beginning to reflect the effect of the approval of Bitcoin
#ETFs. However, I believe that we are only at the beginning of a significant price rally due to the approval of Bitcoin ETFs. I see three reasons for that:
Firstly, Bitcoin has been considered an asset of the grey economy by the broader public, and in the United States, the state conducted a strong negative campaign against it. It will take some time for the broader American public to realize that Bitcoin is an asset in which they can gain exposure through a fully regulated investment tool run by reputable asset managers.
Secondly, the market capitalization of Bitcoin is only 1.4 trillion US dollars (just slightly over 1 trillion if we consider lost coins). Bitcoin ETFs were approved just two months ago, and since then, the number of Bitcoins managed by them has increased by almost 200,000 Bitcoins. After considering the Bitcoins held by the Grayscale Bitcoin Trust, which has been converted into spot ETFs, American spot ETFs currently hold over 800,000 Bitcoins. Just the#Blackrock company's fund alone has purchased over 200,000 Bitcoins, although a significant portion of these purchases resulted from capital transferring from the #Grayscale Bitcoin Trust to lower fees ETFs.
The expansion of the volume of assets held by ETF funds by 200,000 Bitcoins corresponds to $14.7 billion, which is roughly above one percent of the real market capitalization of Bitcoin. And the pace of new capital inflow is increasing.
The third reason I believe that the influx of capital into ETFs will increase further is that most brokers and financial advisors still classify them as unsolicited investments (execution only). Therefore, they cannot be actively offered to investors. When I spoke with two managers from our long biased and long short competition, they both thought that active offering should occur soon, when employees of large financial institutions will be adequately trained to offer this "new" asset.
If the price continues its current rise and Bitcoin once again gains media attention, I am convinced that the broader public will succumb to the FOMO phenomenon and want to participate in the steep rise as well. The fact that we are only at the beginning of the Bitcoin rally is also indicated by data from the Google search engine, which clearly shows that Bitcoin still does not interest the majority of people.
Please do not take my comment as an immediate call to buy Bitcoins; it is a high risk asset that should be approached as a purely speculative trade with no guaranteed outcome. I myself do not own any Bitcoins and remain faithful to our long short strategy in p-hat fund and SoftVision AI
#ETFs. However, I believe that we are only at the beginning of a significant price rally due to the approval of Bitcoin ETFs. I see three reasons for that:
Firstly, Bitcoin has been considered an asset of the grey economy by the broader public, and in the United States, the state conducted a strong negative campaign against it. It will take some time for the broader American public to realize that Bitcoin is an asset in which they can gain exposure through a fully regulated investment tool run by reputable asset managers.
Secondly, the market capitalization of Bitcoin is only 1.4 trillion US dollars (just slightly over 1 trillion if we consider lost coins). Bitcoin ETFs were approved just two months ago, and since then, the number of Bitcoins managed by them has increased by almost 200,000 Bitcoins. After considering the Bitcoins held by the Grayscale Bitcoin Trust, which has been converted into spot ETFs, American spot ETFs currently hold over 800,000 Bitcoins. Just the#Blackrock company's fund alone has purchased over 200,000 Bitcoins, although a significant portion of these purchases resulted from capital transferring from the #Grayscale Bitcoin Trust to lower fees ETFs.
The expansion of the volume of assets held by ETF funds by 200,000 Bitcoins corresponds to $14.7 billion, which is roughly above one percent of the real market capitalization of Bitcoin. And the pace of new capital inflow is increasing.
The third reason I believe that the influx of capital into ETFs will increase further is that most brokers and financial advisors still classify them as unsolicited investments (execution only). Therefore, they cannot be actively offered to investors. When I spoke with two managers from our long biased and long short competition, they both thought that active offering should occur soon, when employees of large financial institutions will be adequately trained to offer this "new" asset.
If the price continues its current rise and Bitcoin once again gains media attention, I am convinced that the broader public will succumb to the FOMO phenomenon and want to participate in the steep rise as well. The fact that we are only at the beginning of the Bitcoin rally is also indicated by data from the Google search engine, which clearly shows that Bitcoin still does not interest the majority of people.
Please do not take my comment as an immediate call to buy Bitcoins; it is a high risk asset that should be approached as a purely speculative trade with no guaranteed outcome. I myself do not own any Bitcoins and remain faithful to our long short strategy in p-hat fund and SoftVision AI
