Apart from Bitcoin whale accumulation, there has been a robust influx of institutional investment into Bitcoin in the past week.
Following its recent rejection at the $28,000 level earlier this week, the leading cryptocurrency, Bitcoin (BTC), is encountering significant selling pressure. Presently, it is trading 1.81% lower at $27,270 (press time) with a market capitalization of $528 billion.
Amidst the broader market downturn, Bitcoin has displayed comparatively lower volatility and has outperformed alternative cryptocurrencies (altcoins). Consequently, Bitcoin’s share of the cryptocurrency market has exceeded 50%. This achievement is, in part, attributed to the significant accumulation by whales, which has persisted even during the market sell-off in the past week.
Accumulating Bitcoin: A Look at Whales and Institutional Investors
Renowned crypto analyst Ali Martinez observed that in early October 2023, large investors acquired approximately 20,000 Bitcoins, amounting to a total value of $550 million.
Although there’s ongoing selling pressure, Bitcoin has seen consistent interest from institutional investors in the past week. For the second week in a row, investment products related to digital assets attracted $78 million in inflows. Bitcoin, in particular, received $43 million in new investments. However, some investors viewed the recent price increase as an opportunity to increase their short positions on BTC, leading to $1.2 million in inflows during the same period.
Nonetheless, analysts anticipate potential BTC price fluctuations in the upcoming months, especially as we approach the halving season in mid-2024. A prominent cryptocurrency analyst, Rekt Capital, has raised the prospect of Bitcoin’s price declining to $20,000 before it initiates its next bull market. It’s essential to consider that persistent inflation factors in 2024 might prolong the time it takes for Bitcoin’s price to rally following the halving event.
Paul Tudor Jones Promotes Bitcoin as a Risk Mitigation Strategy
Given the increasing geopolitical conflicts and the standoff between Israel and Hamas, prominent investors are once again considering BTC as a possible means of safeguarding their investments.
Paul Tudor Jones, a renowned hedge fund creator and one of the wealthiest individuals, has raised concerns regarding significant geopolitical uncertainties and the mounting U.S. government debt, leading to a reduced attractiveness of stock ownership. As an alternative, he sees Bitcoin and gold as appealing options. In 2021, he intended to allocate 5% of his assets to Bitcoin.
The billionaire made these remarks in an interview with CNBC’s Squawk Box on Tuesday, October 10th.
Get free access to our lifetime VIP membership. Join us here.
Leave a Reply