Without fear of volatility, investment institutions are still buying Bitcoin on dips
In an article a few days ago, I wrote: Institutional investors will come back again, but I saw this news today:
"MicroStrategy CEO Michael Saylor said on Twitter that MicroStrategy purchased 328 bitcoins again, with an average unit price of $45,710 and a total value of $15 million. According to previous purchase data, MicroStrategy currently holds 90,859 bitcoins, with a total price of 2.186 billion U.S. dollars, with an average unit price of 24,063 U.S. dollars."
Although it is not clear from the news whether the 328 bitcoins that this big investor bought again were purchased during this sharp drop, but his daring to show his cards when the market sentiment is depressed just shows that this institution has a strong interest in bitcoin. is firm and optimistic.
This public announcement will serve as a strong incentive among institutional investors. I believe that other institutions will enter or re-enter the market to grab chips after seeing such an action.
If we take a closer look at the data released by MicroStrategy, we will find some interesting phenomena:
The average unit price of all the bitcoins it bought was $24,000, and the unit price of the most recent purchase was close to $46,000. From $24,000 to $46,000, Bitcoin nearly doubled.
In other words, after the currency price has nearly doubled, it still chooses to buy rather than take profits. Here are two points worthy of our retail investors' attention:
The first one is that this almost affirms one of my previous predictions: when institutional investors enter the market, the probability of their fancy returns is more than double. So we will see that under the influence of FOMO sentiment and MicroStrategy, institutional investors who are entering the market now and in the future have at least an outlook for Bitcoin close to $100,000 or even higher. This will lay a solid foundation for Bitcoin's market outlook.
The second is that at least in MicroStrategy’s view, the price of Bitcoin internally estimated by this institution may double on the current basis, that is, at least to $100,000.
For the second point why do I judge so?
Because institutional investors are generally cautious and conservative in terms of yield calculation and investment strategy formulation. Looking at MicroStrategy’s holdings, its average cost is US$24,000. If it estimates that the price of Bitcoin can only reach US$60,000 to US$70,000, then under the current market conditions, even if it continues to be optimistic about it, it can still rise to 60,000 to 70,000 US dollars, there is a high probability that you will not continue to increase your position at a price close to 50,000 US dollars, but at most you will wait and see. The reason why it dares to continue to increase its position at this price is that there is at least room for doubling its market outlook.
Therefore, we must pay close attention to the actions of these big players. On the one hand, we can roughly judge the market outlook based on this, and on the other hand, we can roughly infer their views on the market.
On the one hand, MicroStrategy continues to increase its positions; on the other hand, traditional financial institutions cannot restrain their inner anxiety, and continue to run into the market one after another.
This time we finally saw the figure of Goldman Sachs, the top leader in traditional financial institutions.
"Market news: Goldman Sachs will start offering bitcoin futures and non-deliverable forward futures trading services to clients next week". Goldman Sachs is also at the table this time. Since then, it will only be a matter of time, not whether or not, that all financial institutions in the United States will enter Bitcoin.
Another U.S. banking giant, Citibank, recently published a new report titled "Bitcoin Standing at a Turning Point." In the report, the authors chart the evolution of Bitcoin from a form of payment to its current status as a store of value, predicting that within about seven years Bitcoin will evolve into the "currency of choice" for international trade and become the "currency of international trade."
Jurrien Timmer, the global macro director of global asset allocation at Fidelity, the world's largest asset management institution, recently said that the question now is no longer whether to include Bitcoin in the asset portfolio, but how much to include.
The statements of these top financial institutions above are all accelerating the evolution of Bitcoin, stimulating the entry of traditional financial institutions, and at the same time closing the door for ordinary retail investors to enter the market little by little.
I still remind everyone, hold the chips in your hand and don't get off easily at this stage.
