There is just too much buying pressure on bitcoin for it to more than just wick to the downside every now and then. As the Spot Bitcoin ETFs doggedly take huge chunks of bitcoin off the market, and banks and pension funds look to join in, there is only one direction - and that’s up.
$10,000 wipeout
It was only two days ago that bitcoin went into a tailspin, losing as much as $10,000 in the space of 24 hours. Many investors and traders were probably ashen-faced as they watched their investment come crashing down.
Welcome to the world of crypto! Such volatility happens from time to time, and to be perfectly honest, it flushes out the weak hands, and those who greedily pile on the leverage.
Also, look what happens. The price comes right down past what might be expected, and when many think the game is up, that appalling red candle turns into a wick, and two days later we are nearly back to where we started. Rinse and repeat at some point further down the road.
However, for those experienced in the crypto market, and for those who have done their homework on the huge inflows coming into bitcoin, this is just noise that needs to be ignored.
Spot Bitcoin ETF buying is massive
When you know that yesterday, almost $800 million in $BTC buying came into the Black Rock IBIT ETF on its own, you are aware that something incredibly powerful is happening to bitcoin.
The inflows also appear to be growing. Over the last week, every day, around $500 million on average is buying bitcoin off of the market in the ETFs, and the only brake on this is the selling out of the Grayscale ETF. However, that seems to be getting weaker, and the Digital Currency Group (DCG) part of this selling is almost done.
Banks and pension funds are arriving
To add to this, the institutions have only just started to arrive. Bank of America’s Merrill, and Wells Fargo, will also offer ETFs that will give direct exposure to bitcoin.
And how about pension funds? These have the most massive amounts of money that can be invested into bitcoin, and their need is very great, given that making returns on typical traditional investments is just not providing what they need to fill their gaping shortfalls.
JUST IN: 🇺🇸 Arizona State Senate is considering adding #Bitcoin ETFs to its state retirement portfolios. pic.twitter.com/5t6v3Z5UuU
— Bitcoin Magazine (@BitcoinMagazine) March 6, 2024
Therefore, with the Arizona State Senate considering the addition of bitcoin to its State retirement portfolios, this could be the first of many to do so.
Governments can’t manipulate bitcoin
We are still in the early stages of bitcoinization. Looking out over the next few years, it might appear that many trillions of dollars will flow into bitcoin. Why is this likely? Because there is no other asset comparable with bitcoin. Even gold and silver have been manipulated by banks over the decades, keeping the price suppressed so that the dollar can thrive.
No other asset in the world is out of the reach of governments and their central banks, and the manipulation that this would bring. There is only bitcoin, and the institutions are finally waking up to this.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
