Bitcoin's surge towards $100,000 is driven primarily by institutional investors, according to experts. Rob Nelson and Gav Blaxberg attribute the increase to institutional demand, with Blaxberg noting that retail investors make up only 23-24% of the market. Recent large-scale purchases by corporations, such as MicroStrategy's $5.4 billion bitcoin buy, and potential government involvement, are also contributing to the trend. Despite some skepticism, Mauricio Di Bartolomeo is optimistic about bitcoin's trajectory, predicting it will exceed $100,000 as traditional finance struggles to understand its momentum.
Bitcoin is eyeing the $100,000 mark, signaling a significant shift in the cryptocurrency landscape.
Roundtable anchor Rob Nelson, Gav Blaxberg, CEO of WOLF Financial, and Mauricio Di Bartolomeo, Co-Founder and CSO of Ledn, recently discussed the factors driving this surge, including institutional investment and market dynamics.
Rob Nelson observed the uptick in bitcoin's value, stating, "I was one of the people that predicted bitcoin would break a $100,000 before Thanksgiving. I might be proven right." He noted the decreasing volatility and suggested that the influx is "primarily institutional" rather than retail investors.
Gav Blaxberg agreed, emphasizing the role of institutional demand. "It has to be institutional demand. Retail only makes up probably about 23, 24% of the market when it comes to the stock market and crypto," he said. Blaxberg mentioned insights from industry insiders, adding, "They're talking to these institutions and these institutions are telling them they are buying. They're heavily buying."
On Monday, MicroStrategy announced it recently made another $5.4 billion purchase of bitcoin . Some skeptics noted that MicroStrategy might not be able to constantly raise new capital from new issuances forever.
Mauricio Di Bartolomeo highlighted the impact of large-scale purchases by corporations and potential government involvement. "You have these massive offerings from groups like MicroStrategy or Marathon Mining," he pointed out. Di Bartolomeo also mentioned proposals like the U.S. Strategic bitcoin Reserve and Pennsylvania's potential $5.1 billion investment, indicating a trend where "massive companies are getting rewarded by getting oversubscribed on their bond offerings."
Looking ahead, Di Bartolomeo expressed optimism about bitcoin's trajectory. "I don't think we've stopped at a $100,000." he said, noting that traditional finance may not fully understand the momentum behind bitcoin. "Unfortunately, a lot of people are trying to stop or stand in front of it by shorting things like MicroStrategy or shorting the ETFs, and they're getting absolutely crushed as this thing keeps going."