While the cryptocurrency market looks to have peaked for this cycle, in the opinion of some investors in this space, Global Cryptocurrency Assets under Management Reached $57 Billion as investment funds have just got the taste for Bitcoin. I honestly don't know for sure if $60,000 was the peak for BTC, but my gut feeling tells me it's not the case.
The way I see it these large investment funds that have just opened their eyes towards cryptocurrency investments are probably intentionally creating fud and manipulating the market to pull the train a station or two back and get as much BTC they can on a discount. Even Anthony Scaramucci said that he liked BTC more at $40,000 than at $400.
Investing funds and whales such as Scaramucci often times need confirmation from the market before jumping on such assets. From what I read, some of such funds are still on idle for the funds approval for BTC. Such investor species don't work like the rest of us they have another pedigree and they play with way bigger numbers.
There might be the chance that the balance of Bitcoin holders between institutional and retail players to gradually be inclining from the retail side to the institutional one as the later is eating BTC heavily lately. The digital asset investment products attracted $99 million last week. Grayscale itself holding more than 654,000 Bitcoin under management along with 3.18 million Ethereum and 1.47 million Litecoin.
There might be a wealth transfer going on recently, as it was forecast for years, and it looks like retail is selling to institutional and not vice versa, if we take into consideration that this transfer is caused by the massive development of a digital economy and transition of the traditional one towards the new.
Up until 2017 the market has been driven up mostly by all sort of folks all around the world, from cyber punks to grannies and schoolboys, but this cycle is totally different. When Jerome Powell claims that Bitcoin has the potential to threaten gold you know we're up to something.
Not everyone buying Bitcoin lately is doing that as a pure investment, and a hell of a good one, as some are simply doing it out of desperation such as the Turks who saw their already volatile Lira plunging by 15% in one day a couple of days ago. The Turkish currency has had its 24% drop recorded last year which is much more than the recent one.
This time though with all the publicity that Bitcoin is getting, Turks have turned towards it as a hedge against inflation. The google trends search for the number one cryptocurrency by market capital has recently reached its all time high. In some rare cases Bitcoin is no longer just a fancy choice, but a desperate need. Venezuela is another example with their currency facing hyperinflation.
As much as we appreciate financial institutions buying up large amounts of Bitcoin and boosting its price we have to ponder where do they buy that BTC from... I'd say they're not passing it between each other and my takes is that the ones calling for a top at $60,000 are the ones handing these funds quite cheap Bitcoin.
I might be wrong, I know I'm not perfect and don't have a crystal ball, but I believe the current swings in the market are pure weak hands shake offs before the uptrend continuation. I honestly don't believe Bitcoin will peak at only $60,000 for this cycle and ETH at $1,800. There's still room for the upside.
These players are sneaky and they know how to play with the psychology of the masses. My takes is that BTC will peak this cycle at around $300,000. I know that it probably sound unbelievable, but so was $60,000 just twelve weeks ago and here you have it. It's gonna be a bumpy road all the way up and some will fall off the carriage. Hope I'll play my cards right this cycle.
Meanwhile enjoy the HIVE uptrend and glory, we all deserve that, and have a great day wherever you might be.
Thanks for attention,
Adrian
