During the past weeks or so, every major news and media platform seemed to be calling for Bitcoin’s inevitable price surge due speculation of tight supply. However, to the dismay of many, that did not happen and instead – it dove. Will Bitcoin ever rise? We are after all in the 4th quarter, where cryptocurrencies have been known to surge; at least in the past many years.
Solid demand from high net worth individuals
According to our sources, bitcoins have been and will be seeing a solid demand from high net worth individuals – many of which consider Bitcoin “cheap” at the moment. Bitcoins are being bought and sold over-the-counter (OTC) in the hundreds of thousands (of bitcoins), and are handled expertly by brokers and supported by financial institutions.
These high net worth individuals – whales, as many describe them; are very careful not move the market too much. By the nature of them keeping a low profile when buying up excess Bitcoins in the market, we can be quite certain that they are positioning themselves for a huge upside gain when the market moves upwards. Needless to say, there’s not much Bitcoins left in the market at this point.
Institutional investors are waiting for bullish signals
Make no mistake – there are already institutions who have invested into crypto and Bitcoins. However, plenty are still at the sidelines and this may be due to the general feeling of “insecurity” that the industry is largely unsecured, unregulated and unsupervised. Also, many countries’ laws do not allow for businesses and institutions to be invested directly into cryptocurrencies, just yet.
This will probably change as big players in the market seek to play nice with regulators in the market. For example, major exchanges in the US such as Gemini (founded by the Winklevoss brothers) have recently made a huge stride by successfully insuring their clients’ funds. In addition, the big boys in finance themselves have entered the market through major acquisitions – and no “business-friendly” government can ignore them. Regulation will happen one way or the other.
As such, the SEC have begun to pay more attention to calls for open support and approval of exchange traded funds (ETFs), which allow for funds to invest into Bitcoin (and cryptos) as the underlying asset. It is believed that if the SEC approves these ETFs, this will be a precursor to a positive price movement for Bitcoin and other cryptocurrencies – namely supported by the inpouring of funds from those who are still waiting on the sidelines.
When will it go up?
There’s no telling when it will be going up. However, if history is of any consolation, it will happen when we least predict, and it will disregard any negative news or rumours. The move, will be nothing short of spectacular – due to the massive pent up energy and expectations. This time, more people know about Bitcoin, more people have adopted Bitcoin, and there’s obviously a lesser supply in the market at a low price. Perhaps the call for US$100,000 per coin (from last year) is not too farfetched? Let’s see.
Cover photo by: David Hobbs
Rocket Internet by training, he has worked as a professional marketer for Lazada/Alibaba & Bamilo (Ecommerce) and Easy (Transportation). Later, he honed his skills in operations, logistics, and management by launching and growing the Thai business (worth tens of millions) of a popular cross-border ecommerce platform (in Southeast Asia). Headhunted to join a public-listed tech company in Singapore, he led its Thai business until early 2018. Regarded as a trusted advisor by venture builders, Chong spends his time advising and investing into tech and crypto projects.