MicroStrategy still holds more than 129,000 Bitcoin.
Despite the Luna Foundation fiasco, analysts believe that the institutional involvement in BTC is ‘here to stay’.
Analysis
Bitcoin, a cryptocurrency that started from nothing and reached a market cap of more than $1 trillion in just 12 years, has witnessed a significant jump in institutional interest in the last few years. Companies like MicroStrategy, Tesla, Galaxy Digital, Voyager Digital and Block have acquired the world’s largest cryptocurrency in large amounts.
However, the debacle of the Luna Foundation, once known as a prominent institutional holder of Bitcoin, has fueled uncertainty across the crypto market which was already fighting a major correction. Since November last year, Bitcoin has lost more than 55% of its value. So, is it all over regarding institutional BTC interest?
Perhaps not. According to CoinGecko, public listed companies around the world hold more than 225,000 Bitcoin. MicroStrategy alone holds over 129,000 BTC worth almost $3.7 billion. Analysts believe that institutional sentiment is different from retail. Even in the toughest of market conditions, during the past couple of years, when retail traders dumped the world’s largest crypto asset, institutional holders like MicroStrategy and Block bought the dip to hold Bitcoin for the long term.
“Companies like MicroStrategy will hold regardless of price and may even try and add to their reserves, but companies engaged in short-term trading or measuring profits and returns in fiat terms will simply try to use volatility to generate them,” Jason Deane, an Analyst at Quantum Economics, said.
Long-Term Sentiment
Even during the recent market correction, institutional investors held on to their digital assets. Most of the institutional investors accumulated Bitcoin below $30,000. However, some are facing huge unrealized losses due to BTC’s dip below $28,000.
According to Marc P. Bernegger, the Co-Founder of the Crypto Fund AltAlpha Digital, as long as Bitcoin holds on to the current price levels, institutional sentiment will remain positive due to the long-term strategy of corporates.
“Most corporates have a long-term target after investing in Bitcoin. As long as BTC doesn‘t fall further, the long-term sentiment still stays rather positive as markets are in turmoil in general,” Bernegger said.
Here to Stay
Deane said that the recent crash in Bitcoin and other digital assets has sparked discussions in the Board rooms of the companies holding the digital assets. However, institutional interest in Bitcoin will remain intact.
“While short-term strategies may vary, institutional involvement in Bitcoin is here to stay,” the Analyst at Quantum Economics, said.
“While we've witnessed a recent drop in the price of bitcoin and other digital tokens you have to recognize just how far the space has come over the past few years. Institutional investors are mindful that crypto is an asset class that is here to stay, and capital continues to flow into the space,” the Market Analysis Team at Bitfinex mentioned in a recent email to Finance Magnates.
An Opportunity?
Analysts believe that Bitcoin’s current price range is very sensitive to a ‘make or break situation’. A dip below $20,000 will spread enormous panic among even the long-term institutional holders. However, its current price has been termed by them as an ‘attractive level’ for finding new buying opportunities in the market.
Del Wang, the CEO of Babel Finance, said that the current bear market may present different opportunities for long-term institutional buyers.
“Based on our relationships with institutional and ultra-high-net-worth investors, we can see that most are long-term in their outlook, meaning the current bear market may present opportunities for them. Babel Finance has long held to the belief that cryptocurrencies, as well as the underlying blockchain technology, have the potential to revolutionize the financial system as we currently know it,” Wang commented.
Bitcoin, a cryptocurrency that started from nothing and reached a market cap of more than $1 trillion in just 12 years, has witnessed a significant jump in institutional interest in the last few years. Companies like MicroStrategy, Tesla, Galaxy Digital, Voyager Digital and Block have acquired the world’s largest cryptocurrency in large amounts.
However, the debacle of the Luna Foundation, once known as a prominent institutional holder of Bitcoin, has fueled uncertainty across the crypto market which was already fighting a major correction. Since November last year, Bitcoin has lost more than 55% of its value. So, is it all over regarding institutional BTC interest?
Perhaps not. According to CoinGecko, public listed companies around the world hold more than 225,000 Bitcoin. MicroStrategy alone holds over 129,000 BTC worth almost $3.7 billion. Analysts believe that institutional sentiment is different from retail. Even in the toughest of market conditions, during the past couple of years, when retail traders dumped the world’s largest crypto asset, institutional holders like MicroStrategy and Block bought the dip to hold Bitcoin for the long term.
“Companies like MicroStrategy will hold regardless of price and may even try and add to their reserves, but companies engaged in short-term trading or measuring profits and returns in fiat terms will simply try to use volatility to generate them,” Jason Deane, an Analyst at Quantum Economics, said.
Long-Term Sentiment
Even during the recent market correction, institutional investors held on to their digital assets. Most of the institutional investors accumulated Bitcoin below $30,000. However, some are facing huge unrealized losses due to BTC’s dip below $28,000.
According to Marc P. Bernegger, the Co-Founder of the Crypto Fund AltAlpha Digital, as long as Bitcoin holds on to the current price levels, institutional sentiment will remain positive due to the long-term strategy of corporates.
“Most corporates have a long-term target after investing in Bitcoin. As long as BTC doesn‘t fall further, the long-term sentiment still stays rather positive as markets are in turmoil in general,” Bernegger said.
Here to Stay
Deane said that the recent crash in Bitcoin and other digital assets has sparked discussions in the Board rooms of the companies holding the digital assets. However, institutional interest in Bitcoin will remain intact.
“While short-term strategies may vary, institutional involvement in Bitcoin is here to stay,” the Analyst at Quantum Economics, said.
“While we've witnessed a recent drop in the price of bitcoin and other digital tokens you have to recognize just how far the space has come over the past few years. Institutional investors are mindful that crypto is an asset class that is here to stay, and capital continues to flow into the space,” the Market Analysis Team at Bitfinex mentioned in a recent email to Finance Magnates.
An Opportunity?
Analysts believe that Bitcoin’s current price range is very sensitive to a ‘make or break situation’. A dip below $20,000 will spread enormous panic among even the long-term institutional holders. However, its current price has been termed by them as an ‘attractive level’ for finding new buying opportunities in the market.
Del Wang, the CEO of Babel Finance, said that the current bear market may present different opportunities for long-term institutional buyers.
“Based on our relationships with institutional and ultra-high-net-worth investors, we can see that most are long-term in their outlook, meaning the current bear market may present opportunities for them. Babel Finance has long held to the belief that cryptocurrencies, as well as the underlying blockchain technology, have the potential to revolutionize the financial system as we currently know it,” Wang commented.
Bilal Jafar holds an MBA in Finance. In a professional career of more than 8 years, Jafar covered the evolution of FX, Cryptocurrencies, and Fintech. He started his career as a financial markets analyst and worked in different positions in the global media sector. Jafar writes about diverse topics within FX, Crypto, and the financial technology market.
Bitget's Bitcoin Reserve Ratio Soars Over 300% Following Halving
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
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#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
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20-22 MAY 2024
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Looking to expand your network in #Africa?
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Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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