Bitcoin has risen by some 20% to $23,800 before mini-correcting to a current trading price of $22,600 as pictured above.
The currency has entered unknown territory now after decimating bears, with whales apparently accumulating.
$25,000 will probably be a bit of resistance, but $30,000 is the bigger one now and then $100,000 is the biggest after the fallen $20,000.
This rise is sparked by numerous revelations regarding what some are now calling institutional investors on fear of missing out (fomo).
“Eric Peters, chief executive officer of One River Asset Management said in an interview One River Digital Asset Management has commitments that will bring its holdings of Bitcoin and Ether to about $1 billion as of early 2021.”
This guy is apparently some big deal in boomer’s Wall Street so his friends are taking note as something begins to happen this year.
Specifically, stiff upper lip boomer managers now no longer think having some bitcoin is a crazy idea. To the contrary, they are beginning to think it is a good idea.
“Covid-19 provided the ultimate catalyst for that transition,” Peters said. “This is the most interesting macro trade I’ve seen in my career.”
Macro. They’re betting everyone else is betting bitcoin will be the new hedge, and they think everyone will make such bet because data driven paper after paper from academic economists have concluded bitcoin is actually a good hedge.
So they diversifying some of their holdings at a time when bitcoin has a sell side liquidity crisis due to the halvening.
Miners by now, those that have survived, have probably sold off their corn savings, and now are living off new block rewards.
As it happens those block rewards are 50% less than a year ago, so simple maths would say if demand stays the same, price only doubles from $3k to $6k.
But the only simple thing about Nakamoto’s design is its elegance as demand should rise due to pricing in this 50%. That leads to prospective sellers holding out to wait for this doubling. Organic growth by those that don’t care about the price but only function, like international traders or even state actors, have added to this demand. Small miners were rekt by the bears. Big miners IPO-ed. Add in all this boomer finance now wanting some because of all the negative interest rates, and you get… well, no one knows because we’re still in disbelief with maybe a little bit of ‘it is known.’