Investor and cryptocurrency analyst Fred Krueger said: predict A “vicious” Bitcoin (BTC) rally is coming soon. He cited the recent unprecedented accumulation of coins by Wall Street heavyweights.
This surge in institutional interest coincides with the recent approval of the first spot Bitcoin ETF by the U.S. Securities and Exchange Commission (SEC).
Wall Street Increases Bitcoin Purchases
In a post on To illustrate, the analyst noted that Fidelity is purchasing approximately 4,000 BTC daily.
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On the other hand, Krueger says Ark is consuming over 1,500 BTC every day. BlackRock, the world’s largest asset management company, has not yet disclosed its Bitcoin holdings. However, looking at the accumulation rates of Ark Investment and Fidelity Investment, it is highly likely that BlackRock will purchase coins at a faster rate. Lookonchain data to date location BlackRock’s IBIT BTC holdings are over 44,000.
Rather, the rate at which these Wall Street institutions are doubling Bitcoin is net bullish for the price. BTC demand remains high, especially more than a week after the US SEC approved the first branch of the Bitcoin ETF. Their consistent buying suggests that institutions are optimistic about Bitcoin’s potential.
It takes less than three months for BTC accumulation to accelerate, causing the network to halve miner rewards. The Bitcoin halving event in early April saw miner rewards reduced from 6.25 BTC to 3.125 BTC. If past price performance is any guide, the resulting supply shock could trigger another wave of highs and even push prices above $69,000, the 2021 high.
BTC Falls, FTX Unloads Millions of GBTC Stocks
Even amidst overall optimism, BTC is still struggling. Just days after the spot Bitcoin ETF was approved, BTC has been on a downward slide, posting double-digit losses. It briefly fell below $40,000 on January 23 before recovering to the spot rate.
Analysts have pinned the sale on defunct cryptocurrency exchange FTX, which sold about $1 billion worth of Grayscale Bitcoin Trust (GBTC). As FTX Assets sells GBTC stakes, the price is expected to stabilize as intrinsic selling events ease and institutions purchase more BTC at spot prices.
Observers also note that GBTC outflows have matched or exceeded a surge in inflows into other funds, primarily BlackRock’s ETF products.
Featured image from Canva, chart from TradingView
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Source: NewsBTC.com