{"id":189778,"date":"2021-02-26T20:13:32","date_gmt":"2021-02-26T17:13:32","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/bitcoin-price-flies-solo-institutional-crypto-push-may-be-overrated\/"},"modified":"2021-02-26T20:13:32","modified_gmt":"2021-02-26T17:13:32","slug":"bitcoin-price-flies-solo-institutional-crypto-push-may-be-overrated","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/bitcoin-price-flies-solo-institutional-crypto-push-may-be-overrated\/","title":{"rendered":"# Bitcoin price flies solo? Institutional crypto push may be overrated"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3385d73fbba\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3385d73fbba\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoin-price-flies-solo-institutional-crypto-push-may-be-overrated\/#Was_Bitcoins_final_surge_organic\" >Was Bitcoin\u2019s final surge organic?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoin-price-flies-solo-institutional-crypto-push-may-be-overrated\/#Institutional_involvement_in_Bitcoin_could_be_overrated\" >Institutional involvement in Bitcoin could be overrated<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoin-price-flies-solo-institutional-crypto-push-may-be-overrated\/#Institutions_continue_to_buy_the_dip\" >Institutions continue to buy the dip?<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Bitcoin price flies solo? Institutional crypto push may be overrated <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-5a136f3a>In the history of financial markets, there are only a few tradable assets that have conquered this frontier. Currently, Bitcoin has the eighth-highest market cap among all tradable assets in the world, including equities and commodities. Among the top 10 exchange-tradable assets, it sits right above Tencent, which Bitcoin flipped on its eventual surge past the $1 trillion mark, below which stands <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Facebook<\/a>, which was flipped earlier this month.<\/p>\n<p>Bitcoin is only one step away from surpassing Google and two steps away from silver. Considering the history of commodities like silver and gold, which have been <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.thelocal.no\/20111114\/the-long-history-of-gold-trading\/\">traded<\/a> for centuries now, Bitcoin\u2019s history is extremely short, starting only in January 2009 as no more than an experiment. Even stocks like Google and Tencent have histories over two decades, while <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">App<\/a>le and Microsoft have over four decades.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Was_Bitcoins_final_surge_organic\"><\/span>Was Bitcoin\u2019s final surge organic?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In analyzing the timing of Bitcoin finally smashing this landmark, it\u2019s evident that there were no big institutional announcements leading up to the surge in market cap. The Bitcoin Coinbase Premium Index by on-chain data provider CryptoQuant \u2014 when the premium is high, it indicates strong spot buying on Coinbase \u2014 <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/ki_young_ju\/status\/1362707677357379587\">suggests<\/a> that at the time when this breakthrough occurred, the Coinbase premium was negative. <\/p>\n<p>Ki Young Ju, CEO of CryptoQuant, explained to Cointelegraph what this suggests: \u201cThe buying power seems mostly to come from stablecoin whales and retail investors, not institutional investors or high-net individuals in the U.S.\u201d<\/p>\n<p>At long last, Bitcoin (BTC) broke the $1 trillion market capitalization frontier on Feb. 19, with its market cap <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/trip-and-travel\/\" data-internallinksmanager029f6b8e52c=\"10\" title=\"Trip &amp; Travel\" target=\"_blank\" rel=\"noopener\">trip<\/a>ling in just three months. This important landmark came almost a year after it tanked to less than $100 billion on March 12, 2020, more commonly known as \u201cBlack Thursday\u201d in the cryptocurrency community.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-02\/f26207b3-4831-4d44-9fff-b459be97f72f.png\"><\/figure>\n<p>It is also important to consider the proportion of BTC actually in circulating supply before assuming the price implications of Bitcoin volumes. According to research from Glassnode, 78% of Bitcoin\u2019s supply is illiquid, thus <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/insights.glassnode.com\/bitcoin-liquid-supply\/\">implying<\/a> the supply-demand economics of the asset is only a small aspect of how its price is influenced.\u00a0<\/p>\n<p>Fortunately, or unfortunately, for the market, Bitcoin\u2019s price is still mostly dependent on sentiment. This is evident in the fact that Robinhood has already acquired more than 6 million retail crypto investors this year alone.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-02\/7b6af3a5-701a-4707-8004-c04588c5c497.png\"><\/figure>\n<p>While acknowledging the presence and overall influence of institutional investors, Jay Hao, CEO of cryptocurrency exchange OKEx, told Cointelegraph that a Twitter trend could be responsible for the push to $1 trillion: \u201cThis frenzy that included Elon Musk, Michael Saylor, and Senator Cynthia Lummis, could have helped BTC break the $1 trillion market cap without any final push from institutional investors who <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a>ly don\u2019t buy when the markets are looking overstretched.\u201d He added further:<\/p>\n<blockquote><p>\u201cAt this point, many technical indicators suggest that BTC was beginning to look overbought as retail traders jumped in fueled by the \u2018laser-eye\u2019 trend that stormed Twitter with participants shooting for $100K BTC, including many leading CEOs and politicians.\u201d <\/p><\/blockquote>\n<h2><span class=\"ez-toc-section\" id=\"Institutional_involvement_in_Bitcoin_could_be_overrated\"><\/span>Institutional involvement in Bitcoin could be overrated<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Crypto venture capitalist Brock Pierce outlined to Cointelegraph that in his view, institutional involvement could indeed be \u201coverrated\u201d but that it is still present as evidenced by their long positions: <\/p>\n<blockquote><p>\u201cThere has been a mix of retail and institutions and other factors driving the markets higher. In terms of the on-chain metrics, we are seeing large amounts of bitcoin leave the exchanges and also miners that are reluctant to sell \u2014 both of which serve to reduce the supply and reduce any selling pressure on the market.\u201d <\/p><\/blockquote>\n<p>He further opined that corporations are adopting \u201cprogrammatic buying\u201d as they attempt to reach a certain allocation. Moreover, as indicated by both Pierce and Hao, it is often the sentiment in the market that causes retail investors to get involved, thus causing major price movements in the BTC market.<\/p>\n<p>Ju recently <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/ki_young_ju\/status\/1364222647295336455\">pointed out<\/a> on Twitter that prominent miners often have private wallets separate from their mining wallets; hence, their power could be greater than what on-chain analysis may suggest. He further clarified the implications this may have on the price of Bitcoin:<\/p>\n<blockquote><p>\u201cAffiliated miners (whales) seem to sell Bitcoins in exchanges, not via OTC deals. They have personal wallets other than mining wallets, so it\u2019s important to see the trend, not an absolute number. The significant outflow happened when the price was 58k, and it has been cooled down lately.\u201d<\/p><\/blockquote>\n<h2><span class=\"ez-toc-section\" id=\"Institutions_continue_to_buy_the_dip\"><\/span>Institutions continue to buy the dip?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>After Bitcoin breached the $1 trillion mark, it quickly went on to reach its all-time high of $58,352 on Feb. 21. But the very next day, BTC price dropped 20% alongside several other cryptocurrency assets in a correction now more commonly referred to as \u201cBloody Monday\u201d in the cryptocurrency community. Its price continues to trade between around $45,000 and the previous $50,000 support level.<\/p>\n<p>During this drop in price, it seems that institutional investors have taken it as a green light to buy the dip in large quantities. Jack Dorsey\u2019s Square bought another round of Bitcoin, approximately 3,318 BTC for $170 million. Square first purchased Bitcoin in October 2020, buying 4,709 Bitcoin for about $50 million at an average price of $10,618 per BTC. Square\u2019s motivation to buy the dip in a second round of investment could be driven by the fact that its gains on the first round of investment are around 400%.<\/p>\n<p>In addition to Square, Michael Saylor\u2019s MicroStrategy purchased another $1 billion worth of Bitcoin, an additional 19,452 coins at an average price of $52,765. This investment into Bitcoin comes just six months after its initial investment of $250 million in August 2020. <\/p>\n<p>Now, MicroStrategy owns over 90,000 BTC, which <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/bitcointreasuries.org\">accounts<\/a> for 63% of its total market cap. Saylor has <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.microstrategy.com\/en\/investor-relations\/press\/microstrategy-acquires-additional-19452-bitcoins-for-1-026-billion_02-24-2021\">announced<\/a> that MicroStrategy \u201cremains focused on our two corporate strategies of growing our enterprise analytics software business and acquiring and holding bitcoin.\u201d Hao further commented on the purchase:<\/p>\n<blockquote><p>\u201cThe MicroStrategy debt offering and subsequent purchase of additional $1 billion of BTC was a massive announcement, although we already know what a huge Bitcoin bull and evangelist Michael Saylor is! [&#8230;] Institutional investors do not chase trends, rather they wait for corrections to come in and buy at an acceptable price. I expect we will be hearing about more and more institutional activity shortly.\u201c<\/p><\/blockquote>\n<p>David Donovan, executive vice president of Publicis Sapient \u2014 a digital transformation firm \u2014 expressed to Cointelegraph his reservations regarding the lack of regulation, especially because investing in BTC comes with risk and volatility: \u201cIndividuals should not invest their money in bitcoin if they are not in solid financial standing as there is no FCID protection for stored bitcoin at this time.\u201d<\/p>\n<p>JPMorgan Chase became the most recent financial giant to cautiously endorse Bitcoin when it advocated in a note to clients that \u201cinvestors can likely add up to 1% of their allocation to cryptocurrencies in order to achieve any efficiency gain in the overall risk-adjusted returns of the portfolio.\u201d Most would see this as a bullish announcement; however, as the price of Bitcoin continues to struggle below $48,000, it adds to the narrative that the influence of institutional investors on the market could be overrated in the minds of the average crypto consumer.<\/p>\n<\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/bitcoin-price-flies-solo-institutional-crypto-push-may-be-overrated\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Bitcoin price flies solo? Institutional crypto push may be overrated &#8221; In the history of financial markets, there are only a few tradable assets that have conquered this frontier. Currently, Bitcoin has the eighth-highest market cap among all tradable assets in the world, including equities and commodities. Among the top 10 exchange-tradable assets, it&#8230;<\/p>\n","protected":false},"author":1,"featured_media":189779,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDIvOWE1NzViN2UtZDRjYi00NzJkLWFkZTQtNmVmNmI5NGNkYzA2LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74937,74894,74927,117],"class_list":["post-189778","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-price","tag-blockchain","tag-square","tag-business"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/189778","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=189778"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/189778\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/189779"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=189778"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=189778"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=189778"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}