Before 2021, Bitcoin was a paradise for speculators. Many people became "whales" because of the crazy appreciation of Bitcoin, but they were mostly individual investors.

Since 2021, listed companies and capital institutions have begun to enter the market in large numbers. At that time, the world's richest man Musk called for Dogecoin, and Tesla's purchase of $1.5 billion in Bitcoin made headlines. But unfortunately, these institutions are still just "small shrimps" in the market, and Bitcoin whales still dominate.

However, the situation has changed since the world's largest asset management companies BlackRock and Fidelity Group applied for Bitcoin ETFs in 2023. Especially after the ETF was officially approved by the US SEC, the US ETF has held more than 1 million BTC, worth about $100 billion, and the listed company MSTR has spent tens of billions of dollars to purchase more than 330,000 BTC by issuing stocks and bonds, worth about $30 billion. Looking back at Tesla's $1.5 billion purchase of Bitcoin in 2021, it is simply not worth mentioning.

According to glasssnode data, after the Bitcoin ETF was approved in January, BTC hit new highs. By March, long-term investors sold more than 900,000 BTC. After Bitcoin surged again in September, the group now sold more than 500,000 BTC. This is a considerable scale.

There is no doubt that all these sold chips were taken up by institutions. After this cycle, BTC will really be dominated by institutions. Due to the rapid increase from $70,000 to $100,000, there is a kind of "air gap" below. The market needs to consolidate this area before trying to break through $100,000. Therefore, when the market approaches $100,000, long-term investors also sell off on a large scale.

The capital market dominated by institutions is not only about spot trading, but also about the scale of derivatives, because institutions have a demand for various derivatives, whether for speculation, hedging or hedging. It is worth noting that the open interest of Bitcoin contracts has also surged, reaching a scale of US$60 billion.

In the future, Bitcoin will still have bull and bear markets under the leadership of institutions, but it will be difficult to see sharp rises and falls like before, and the crypto market will become healthier. The era of buying with your eyes closed and getting rich is over. In the future, you need to have a keen eye to identify truly valuable projects, and then you can make money from growth.

If gold is the anchor of the traditional financial market, Bitcoin, as "digital gold", will be the anchor of crypto finance in the future. After the gold ETF was approved in 2004, after the financial crisis in 2008, the quantitative easing in the United States reached its peak in 2011, and then fell into a bear market correction for several years. During this period, technology companies such as Google, Apple, Microsoft, and Amazon began to explode, driving the subsequent prosperity of web2.

The Bitcoin ETF will most likely push Bitcoin to another climax. With the advancement of compliance, the completion of infrastructure, and the implementation of applications, the web3 world will surely usher in prosperity.



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