As a seasoned crypto investor with a few years of experience under my belt, I’ve seen my fair share of market volatility and price swings. Peter Schiff’s recent comments about the lack of institutional demand for Bitcoin may be dismissive, but they also raise valid concerns.
Bitcoin skeptic Peter Schiff disputes reports suggesting increased institutional investment in the first cryptocurrency. This assertion from Schiff arises after last week’s Bitcoin market downturn, resulting in a 10% drop in price on Friday.
Peter Schiff Claims Little Institutional Demand For Bitcoin
As a blockchain analyst, I’ve uncovered some intriguing transactions according to the data from Lookonchain. Specifically, entities linked to the German and US governments, as well as Mt. Gox, have collectively transferred 17,788 Bitcoin, equivalent to approximately $1.08 billion, to various cryptocurrency exchanges since June 19.
The German government has been offloading significant portions of its Bitcoin holdings daily since early July, including the sale of approximately 3,000 BTC, worth around $175 million, on Thursday. This consistent selling, along with anticipated sales from Mt. Gox creditors and the US authorities, created immense downward pressure on Bitcoin’s price. As a result, the token’s value dropped from $60,097 on Thursday to as low as $53,971 on Friday.
Regarding this occurrence, Schiff expressed in a recent tweet on the weekend, that Bitcoin’s price drop signaled that the institutional interest in the market frontrunner was perhaps overhyped. Although he conceded that market selling pressure played a role in the cryptocurrency’s decrease, he also highlighted the lack of substantial institutional buying, which if present, would have stepped up to purchase the large quantities of Bitcoin being offloaded.
Schiff’s remarks are probably directed towards the widespread belief that institutional interest in Bitcoin has surged since the launch of Spot Bitcoin ETFs early this year. Notably, Bitcoin’s price experienced a significant uptick during the first quarter of 2024, reaching a new record high of $73,750. This upward trend coincided with the swift expansion of the Spot Bitcoin ETF market, which saw a trading volume of over $10 billion in March.
Bitcoin Poised For Market Rebound, Analyst Says
Recently dipped in price, Bitcoin could be gearing up for a market bounce-back, according to well-known crypto analyst Rekt Capital. In his latest post on Reddit over the weekend, Rekt pointed out that Bitcoin managed to end its daily trading above $56,750, keeping it within the lower boundary of the $60,600 range.
Based on the analysis, if Bitcoin (BTC) maintains its current price range, it may experience a significant price surge up to $71,000 in the near future. At present, BTC is priced at $58,189 and has gained 2.45% in the last day. However, its daily trading volume has significantly decreased by 63.35%, currently standing at $20.61 billion.
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2024-07-07 10:34