Updated: Jul 5
:SIREN: :SIREN: :SIREN: This is not a drill, I repeat this is NOT a DRILL!
Update: Will Clemente, On-chain Analyst, believes the Bitcoin supply shock is now in play.
Yes, I do realize that many times Crypto content creators use click bait titles to lure you in but trust me this is not one of them. Roughly three-quarters of the 18.6 million BTC mined to date is not up for sale or even moving anywhere, Glassnode calculates.
EllioTrades Crypto is highlighting the BITCOIN SUPPLY CRISIS; $1M BTC coming and he answers the question: Is it too late to invest in Bitcoin; Path to $500K explained. In a recent interview Lark Davis aka @TheCryptoLark had with Raoul Pal, Co-Founder and CEO of Real Vision, he said the Wall of Money is coming; he’s seen it before. He’s not alone. Dan Morehead has been beating this drum for months. In a recent video from Aimstone, he highlights a presentation from Dan where he says Bitcoin is the most asymmetric he’s seen. He believes Bitcoin is better than Gold which is a $9 Trillion Dollar opportunity. He blames the institutional buyers, like PayPal and MicroStrategy, for the Bitcoin shortage and believes the supply crunch could be having a dramatic impact on the price.
In addition to these two behemoths, we’ve got Grayscale the king of them all continuing its buying spree as they snatch up another 12,000 BTC just this week. But why are they buying? Because their customers are demanding it. Remember? Robert Breedlove said: “21M Fixed Supply + MASSIVE Demand = Number go up!” It’s as simple as that, that’s all you need to remember.
This same sentiment is echoed around the industry. “On-chain analyst and chief technology officer at Glassnode, Rafael Schultze-Kraft, says investors are underestimating just how much demand for Bitcoin is outstripping supply,” according to an article posted on The Daily Hodl. “The head of institutional coverage at Coinbase, Brett Tejpaul, says institutional interest in crypto assets has grown more than threefold since he joined the crypto exchange in April of 2020,” also from The Daily Hodl. And if that’s not enough demand, “Pierre Rochard, Bitcoin Strategist at crypto exchange Kraken, recently explained why he expects more than half of the companies making up the S&P 500 to have Bitcoin in their balance sheet by the end of 2021,” according to Cryptoglobe.
As most of you might be aware, Bitcoin enters the system via miners. These miners then sell some of their holdings to fund their operations. But, “the crypto investment firm and hedge fund Pantera Capital says new numbers indicate PayPal is now buying 100% of all new Bitcoin entering the market,” according to The Daily Hodl. In addition, Dan Morehead, CEO of Pantera Capital, says we could see a 40% increase to peak around $115,212.
To make matters worse (or better depending on your viewpoint) “while big investors are buying up large stashes of Bitcoin, there’s less sitting on exchanges, Decrypt Media reports and “some $14 billion worth of bitcoin has been withdrawn from exchanges since March, Trustnodes reports.
Are you getting the picture yet? Okay, the last thing and I will let you go. “The chief decision maker for where BlackRock, the world’s largest asset manager, invests its funds said bitcoin could take the place of gold to a large extent because crypto is ‘so much more functional than passing a bar of gold around’, according to Coindesk. They are not alone, “Anthony Scaramucci, founder of global investment firm SkyBridge Capital and former White House communications director, says Bitcoin could easily become digital gold and a store-of-value asset,” as reported by The Daily Hodl. An interview of him on CNBC was just highlighted by Altcoin Daily where he talks about an avalanche of institutions prepared to buy Bitcoin. Remember it was said that there are 31 Million Millionaires in the US and only 21M Bitcoin, so each Millionaire can’t own 1 Bitcoin? Well MicroStrategy’s Michael Saylor said 10 Billionaires could triple the price of Bitcoin.
And I will leave it there. The question is - as a result of seeing all of this - what will you do?