Bitcoin has been riding the waves and getting more popular since Wall Street players like Black Rock started showing interest in it. However, institutional funds will need to get Bitcoin hodlers to sell their stash to them.
Coverage:
Bitcoin Has Been On A Roll
As Bitcoin’s future getting brighter, more people are willing to hodl their bags for the long term, and this isn’t playing out very nicely for Wall Street institutional funds that are just getting into the Bitcoin space.
Since the start of the year, Bitcoin price has more than doubled, shooting up from the lows of $16k to the current highs of just above $35k. Anyone who had the smarts to invest in Bitcoin early in the year has gained over 100% ROI by now.
This is only motivating more people to keep holding.
Over 88% Of Bitcoin Hasn’t Moved In 3 Months
According to data from Glassnode shared by one Bitcoin analyst, close to 90% of all the Bitcoin supply has not seen any movement over the last 3 months. Point to note is that this period marked Bitcoin’s price rise to the current level.
This revelation will obviously make Wall Street very jittery. While there’s a lot of money set to pour into the Bitcoin market, the fact that hodlers are unwilling to part with their BTC is an impediment to these funds.
Will Wall Street Pump Or Dump Bitcoin?
For Wall Street money to find anything to buy in the BTC market, something has to give to motivate stubborn hodlers to sell their coins.
Now, two angles could be attempted:
-Pump Bitcoin price so hard as to convince the hodlers to grab the big bag in fiat
-Try to hit the market and drive down the price with lots of FUD to make the shaky hands let lose of their stash
Given that a lot of Bitcoin believers held their coins through the crypto winter, the second option is pretty much unworkable at this point. The first option might seem more appealing. There’s no telling whether even that would work in light of the current inflation.
Still, it might work for those who are affected by the current debt crisis and want to grab the opportunity to sell their BTC at high price to clear their fiat debts. Either way, Wall Street and its huge bags will have to really pump it to make it work.
