Leading cryptocurrency experts recently announced that institutional money is heading towards this cryptocurrency! Here are the details…
Institutional money turns to Bitcoin: “This cryptocurrency safe haven!”
Benjamin Brannan, Head of Strategy at CryptoQuant, one of the well-known names in the crypto money market, stated that Bitcoin “come out of the depths of the bear market” against the questions of whether the bull market is back. The head of strategy said that he received big news from institutional clients planning to invest in Bitcoin and crypto in the 3rd and 4th quarters of 2023. On the subject, Brennan added that he received the news from large companies with “corporate money” in general and from conversations with core fundraisers, adding that he cited data he received from various institutions.
Brannan added that institutions are waiting for the second half of the year for confirmation that Bitcoin (BTC) has come out of the bear market, and that “this is how it looks” so far. This reveals that institutional money is heading towards Bitcoin and they are following it closely. On the other hand, Bitcoin, which was traded at about $ 16,500 at the beginning of the year, rose rapidly to over $ 27,000 in response to the banking crisis in the USA this year, in which Silicon Valley Bank, Silvergate, First Republic and other banking institutions went bankrupt. This event coincided with the falling correlation between Bitcoin and stocks and the rising correlation with gold. This phenomenon is particularly evident in Bitcoin’s new resilience to the Federal Reserve interest rate hikes that hit both stocks and crypto last year.
Bitcoin's correlation to Gold is the highest that its been in years, surpassing its correlation to the S&P
(h/t @KaikoData) pic.twitter.com/5TDOtlm5zq
— Will Clemente (@WClementeIII) April 3, 2023
Brannan, in his recent statements, stated that the “rush to Bitcoin” is a sign that the market sees the leading cryptocurrency Bitcoin as a safe haven, at least momentarily. In the long run, he predicted it would act as a mix of stocks and gold. On the other hand, CryptoQuant Marketing manager Ho Chan Chung predicted that Bitcoin (BTC) is seen as a commodity that performs well when the fiat system is not doing well. Unlike other cryptocurrencies, regulators in the United States agree that only Bitcoin is a commodity, while altcoins can be securities.
The expert name is MVRV for Bitcoin and points to these indicators!
Bitcoin is notorious for cyclically moving between bull and bear markets every four years due to its supply issuance schedule that lowers the inflation rate at the same time intervals. While the overall pattern is predictable, it is difficult to get the exact timing of the crypto market’s highs and lows. According to Brannan, there are some reliable indicators for spotting bottoms from an on-chain perspective. One is the Market Value to Realized Value ratio (MVRV), which divides the market value of an asset by its actual value. On the subject, Brannan quotes the following words:
If most of the participants are holding their coins with unrealized earnings, with very high unrealized earnings, you might think that many people want to sell, make some profit.
MVRV derivatives, including Ratio of Output Profits Spent (SOPR) and net unrealized profit and loss (NUPL), can also help identify market peaks and troughs, especially when they exceed significant threshold ratios.
Bitcoin price predictions
When asked about their price predictions for the near future, both Brannan and Chung agreed that Bitcoin probably won’t retest its $16,000 lows. On the subject, Chung said, “If there are no black swan events like Russia dropping nuclear weapons on Ukraine or Binance is blown up… then we have to be pretty consistent in seeing lows.” However, Chung added that Bitcoin may even surpass its previous all-time high by the second quarter of 2024, that is, by the time the next Bitcoin halving takes place.
Brannan said that in the long run, Bitcoin could realistically reach $1 million by 2030. Even the tightening regulatory situation in the United States could benefit the asset, according to Brannan. In his words on the subject, Brannan said, “I think Bitcoin is more difficult to regulate than “crypto”. I think it can help.” said. As quoted by Kriptokoin.com, the BTC price is instantly traded at $26,873.89.
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