Bitcoin (BTC) is the first blockchain-based cryptocurrency. All the Altcoins were like “follow the leader”. The correlation between BTC and Altcoins is decoupling. Also, very often, the market swings in Bitcoin have been linked to market swings in the US.
There is a lot of narration going on about Bitcoin. It is related to the inflation and Fiscal stimulus. There are narrations about institutional adoption, exposure of corporate treasury funds to bitcoin. There are narratives from altcoin creators that BTC would lose its charm with the coming of PoS. Also, the PoW and energy issue is brewing. The idea that Altcoins are decoupling from the BTC price is stirring the pot. There is a projected bandwagon march against Bitcoin PoW by the PoS guys.
A pullback does not seem to be something that worries seasoned investors anymore. They believe it is a correction and they are looking at a pullback, drawdown or a dip to be a chance to add their position in Bitcoin. There is no creepy fear about Bitcoin yet. There is still a lot of interest. People are more bullish than they are bearish when it comes to HODL BTC. Many of them have “Bitcoin optimism” carved in their minds like they have been carved on a stone!
The over buy, over leverage idea is also not an accepted narrative as far as BTC is concerned. Many of them are determined to hold. With open interest at record highs more people are looking to borrow. And the trust that small retailors and holders are having with BTC is more valuable than ever before. With every pullback, it is kind of interesting that people are picking up on the dip.
There are those who are anticipating a crash and many are left wondering how down will this go? The idea is that as long as there are institutional bids, retailors and corporate treasuries taking position there might not be a big crash. Even if there will be a so-called crash the belief in BTC is so high that some investors are waiting to acquire the top markets at the time of the crash.
Top financial experts believe that there is not really as much institutional investment to date as much as it would take to call the BTC indispensably good. A lot of funds are expressing their interest to improve their exposure with respect to bitcoin. Funds have a lot of value. And, when they choose Bitcoin this is enough proof of improved interest and will add lot of value to the asset as a whole.
When it comes to identifying the countries and geographical locations from where there is lot of money coming from in terms of BTC investment, the decentralized nature of the funds make it difficult to assess the percentage interest. There will likely be a continued interest in the space.
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