Institutional interest in Bitcoin has been on the rise in recent weeks. “Institutional interest” refers to companies (read: large companies) showing interest in exposure to Bitcoin. This interest is reflected in a Blackrock (American asset manager) Bitcoin ETF reapplication, as a previous application was rejected by the Securities and Exchange Commission (the financial watchdog of the United States), as well as the application for a Bitcoin spot ETF, also by Blackrock. In addition, the Chinese bank HSBC has also introduced an Ethereum and Bitcoin ETF, which is already tradable. And now, even more bullish Bitcoin news: a price prediction from Standard Chartered Bank in London, which expects Bitcoin to be worth $120,000 by the end of 2024!
Institutions are jumping on Bitcoin
The crypto winter has been going on for about 2 years now. In May 2021, most altcoins saw their ATH (all-time high) in terms of price. Bitcoin peaked in price in November 2021 and has since fallen by almost 50%. For comparison: Netflix, for example, saw a price drop of over 75% in the 2021-2022 period! Wow…
Anyway, back to Bitcoin. At the time of writing, Bitcoin is already almost 100% higher compared to the beginning of this year! Bitcoin also holds up better, price-wise, compared to many altcoins. Popular altcoin Cardano, for example, is currently 90% lower than its ATH, and Cardano is not the only one… The price of Bitcoin has high peaks and low valleys, but apparently, it is scaring away large institutions less and less, and as a result, we are seeing more institutional interest in the coin.
Bitcoin vs. Blackrock, HSBC, and Standard Chartered Bank
When you read the above (company) names, you might think, “what a random combination,” and you would be right. American Blackrock is one of the world’s largest asset managers with approximately $9 trillion under management. HSBC, on the other hand, is one of China’s largest banks (read: Hong Kong). What “connects” these two financial giants? You guessed it; Bitcoin! HSBC offers a Bitcoin ETF that has been tradable since June 26 of this year. In turn, Blackrock has submitted a reapplication to the SEC for a Bitcoin “futures” ETF + an application for a Bitcoin spot ETF!
The main difference between a futures ETF and a spot ETF is that with a spot ETF, there is actual exposure to the underlying assets, in this case, Bitcoin. Bitcoin is held as a reserve in this spot ETF. So, in that sense, a spot ETF is “better” for Bitcoin and Bitcoin holders.
And as the icing on the cake, even more noteworthy news from the institutional side: a bullish price prediction from Standard Chartered Bank. This bank is based in London, England. It is one of the largest banks in England with over 85,000 employees worldwide. Earlier this year, in April, the bank made a Bitcoin price prediction of $100,000. This week, they have upped the ante (quite a bit); a prediction of $120,000 by the end of 2024! The expectation for this price would be based on a possible increase in profits for Bitcoin miners. Due to this increase in profit, miners would need to sell less Bitcoin, and the selling pressure on Bitcoin would decrease, which is positive for the price. The analysis was made by one of the bank’s top analysts.
Is it a good time to invest?
This news is, of course, positive for Bitcoin and other crypto holders. The fact that large companies are investing in Bitcoin means that demand for Bitcoin will increase while the supply remains the same; after all, there are only “just” 21 million Bitcoins in total. Since November 2021, Bitcoin has seen a significant price drop. The economy has taken many hits over the past year and a half due to the war, along with its consequences such as inflation. In addition, crypto has also experienced many bizarre things such as the FTX, Terra Luna, and Celsius crashes. These crashes were only one of many, by the way.
As mentioned earlier, at the time of writing, Bitcoin has already seen a price doubling compared to the beginning of this year. The price has been fluctuating steadily around $30,000 for some time now. You might wonder if we have already seen the bottom… unfortunately, no one knows.
A strategy for investing in Bitcoin could be a “DCA” strategy. That stands for Dollar Cost Averaging and means that you buy a “little” Bitcoin regularly over a period of time (monthly, for example). This way, you buy Bitcoin at different price levels; sometimes alittle higher, sometimes a little lower. This spreads your risk and protects you from buying at a high point. It’s always important to do your own research before investing in anything, especially when it comes to volatile assets like Bitcoin. It’s also important to only invest what you can afford to lose.
Have you become excited and want to invest in Bitcoin? Or in other crypto? Here you will find an overview of exchanges we have experience with
The post More Bullish Bitcoin News! appeared first on YourCryptoLibrary.