14:23
SKYBRIDGE CAPITAL EXPECTS “TIDAL WAVE” OF CAPITAL TO HIT BITCOIN

Bitcoin has undergone an extreme rally over the past three months, pushing to $28,000.
BTC now trades for $26,500 even after a slight correction.
Analysts believe that there will be a tidal wave of capital entering the cryptocurrency space that will boost prices even more.

BITCOIN COULD GET HIT BY TIDAL WAVE OF CAPITAL

Bitcoin has undergone an extreme rally over the past three months, pushing to $28,000. BTC now trades for $26,500 even after a slight correction.

Many attribute this rally to institutional capital. Namely, there have been large funds, corporations, and other firms in that class buying cryptocurrencies to diversify their portfolios.

Take the case of MicroStrategy, a business services company that bought $650 million worth of Bitcoin in and of itself. As reported by Bitcoinist, the company wrote at the time it made this purchase:

“TYSONS CORNER, Va.–(BUSINESS WIRE)–Dec. 21, 2020– MicroStrategy® Incorporated (Nasdaq: MSTR) (the “Company”), the largest independent publicly-traded business intelligence company, today announced that it had purchased an additional approximately 29,646 bitcoins for approximately $650.0 million in cash in accordance with its Treasury Reserve Policy, at an average price of approximately $21,925 per bitcoin, inclusive of fees and expenses.”

According to a Skybridge Capital slide deck shared by Bitcoin investor Hanson Birringer, the investment fund expects a tidal wave of institutional capital to come into the Bitcoin space.

The slide deck shows that the firm’s investors think that Bitcoin will see maturation as an asset class. The slide deck specifically names the entrance of pension funds, RIAs, hedge funds, and other institutional investors.

RETAIL DEMAND IS SKYROCKETING AS WELL

Retail demand for Bitcoin is shooting higher as well.

Dan Morehead, CEO of Pantera Capital, recently found that the amount of Bitcoin being purchased by PayPal users is likely skyrocketing to account for more BTC than there is mined each day:

“When @PayPal went live, volume started exploding. The increase in itBit volume implies that within two months of going live, PayPal is already buying more than 100% of the new supply of bitcoins… In the last seven months, we’ve had two huge shifts — one in demand, one in supply — both upwards. On the demand side, we’ve had public companies like PayPal enter the market. That shifts the demand curve much higher. At the same time, the supply of newly issued BTC was cut in half in May — as part of the every-four years Halving of bitcoin issuance. Fewer BTC are available. We titled our previous investor letter, Bitcoin Shortage. The price acts like there’s a shortage.”

This demand spike for Bitcoin could cause a shortage over time, analysts say, that will drive prices about $100,000 and beyond.

Sourse: bitcoinist.com

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Category: News | Views: 68 | Added by: danyagames2007 | Tags: #Bitcoin #Bitcoi Price #BTC | Rating: 0.0/0
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