Recently, there has been a massive uptick in the Bitcoin investment scene. Although the money is not flowing directly through the exchanges, the interest growth will inevitably spill over into the public market at some point. Lets discuss how this could happen, and when we might start to see the next Bitcoin bull run.
Nothing should be considered investment or financial advice. Enjoy the ride.
Grayscale Bitcoin Trust Fund
The Grayscale Bitcoin Trust Fund is one of the most well known funds in the market. It does a great job of measuring the institutional interest across the market, and the general sentiment surrounding the crypto market. Here lately, that interest has been sky rocketing reaching heights it almost never has before. For instance, from Q1 2019 to Q1 of 2020, the daily investment total has gone up by a multiple of 10x. That means for every dollar someone bought of the trust in early 2019, they are buying 10 in early 2020. A huge bump in the investment scene pushing Grayscale’s AUM to over $3.5 billion for crypto alone.
The total assets under management are reaching an impressive number. Just over 3.5 billion in their Trust Fund, Grayscale is looking to be a considerable figure in this space moving into the 2020 – 2021 bull market that will be important to watch.
Bitcoin Bull Market Signals
While this is not the strongest signal for the Bitcoin Bull Market, it is still a good one. Clearly with the world on the edge of collapsing financially, investors and institutions are looking to something more stable in order to protect their wealth. Even more interesting, Goldman Sachs held a public meeting to discuss investing options into Gold and Bitcoin in order to leverage the times and layout a firm plan for protecting against inflation. Historically, the guy leading the call was known to publicly disregard Bitcoin.
This comes just in time for the Bitcoin halving that went off with a sign of trouble. We could quickly see some exponential gains on Bitcoin, but my belief is that it may take a little bit longer before we start to see the stars behind the moon again.
Circling back to the previous halving, it was a good year and a half after the halving before Bitcoin reached it’s respective peak of 20k. Falling quickly back to half of that value at 10k. Ever since, Bitcoin has struggled to maintain this price level without quick downward pressure to the 7k – 8k region.
Looking back, I consider Bitcoin to have gone on a 5x multiple last bull run from the 4k stable position to the 20k high we saw briefly. Assuming 10k is our new stable condition before this up coming bull run, it would not be uncommon to see a 30k – 50k Bitcoin price with 20k being the safe retracement level.
Only time will tell, but if I had to bet on the next Bitcoin high, it would be sometime near the end of 2021, giving investors plenty of time to stack their bags.
Russia Banning Bitcoin
Recently in the news as well, Russia has been said to of banned Bitcoin purchases in cash.
Clearly the “democracy” that is Russia, does not want it’s population hiding its wealth in the digital asset. This has been common practice for criminals and the rich all over the world, but it is ironic how we see the communist lead countires react to a decentralized asset.
The real question they have is, do they support it or do they ban it? I think there has not been a clear line drawn, but for now it seems Russia is trying to control what they still can.
The post Grayscale Boasts Massive Inflow of Investments – BITCOIN Bull Market Signals appeared first on San Francisco Tribe.
