- This article reflects my personal opinion on Bitcoin and cryptocurrency market -
- This article is not an investment advice, my personal opinion -
Bitcoin's price started to surge as we near the halving event. But this time, it will be different than the time prior. What is the difference?
This time, institutional investors also joined with the ETFs. If we consider Blackrock from the institutions, they already bought over 110K Bitcoins.
The money that they hold changes the game forever.
Compared to gold, its number is programmatically set, while gold is mined continuously - this way, it can preserve value better than gold, while the storage is more efficient.
However it is still a young investment, these institutional investors within one month acquired over 3% of the total bitcoin supply.
The cryptocurrency exchanges available amount decreasing day by day, as nearly 600-1000 million of USD flow to the ETFs daily.
As we know the basics of economy, if supply is less than the demand, the price will go up. I expect the same here also. As the price start to form a parabolic graph, more FOMO will take place which will drive more the price!
What I'm really curious, if we think about the bear cycle of the bitcoin 4 year cycles, how deep will it be, or it turn into a continuous upward direction.
The real difference what will come this year, is the replacement of the retail part in the market share to institutions. Once we get bigger institutional adaptation for value store, the next can be a governmental adaptation, which we already see in such countries like El Salvador.
If we talk about prices:
Retail era is the pre 100K USD price
Institutional era is the 100K to 10m price segment
Governmental era is the 10m+ price segment
Those retail investors who not willing to sell their holdings (or HODLings) will be the new UHNW individuals - and this turns into the topic of this article.
Investment into different ranks will be extremely difficult as the price increases, most retail people will be happy if they even near the Crab category.
With proper investment strategy, it is not impossible to increase the private wealth of these assets, but it will be more complex task as the price increase.
Bitcoin soon became asset of institutions, so altoins will be the only available assets which retail investors afford. For Altcoin investors this is a great opportunity, as the moving interest will increase price of the Alts also.
Looking forward to this bull run, where we stand at next year's end.