Are these institutions still buying Bitcoin after the “619” crypto market’s deep correction?

If May 19 (“519”) was the day when the crypto market experienced an avalanche-like decline, then June 19 (“619”) further intensified the depth of the market’s correction. This round of crypto asset bull market is fundamentally driven by global quantitative easing, but currently, monetary policies of various countries are expected to tighten, and there are constant short-term negative news. The crypto market has been falling for more than a month.

Although bull markets tend to fall sharply, and bear markets tend to rise sharply, which is one of the laws of financial market development, there are still many people who leave the market after the continuous decline. On June 21, CNBC host Jim Cramer said on Monday that he had sold most of his Bitcoin holdings and expressed concerns about the Chinese government's recent crackdown on cryptocurrency mining and the role of Bitcoin in some ransomware attacks. Robert Kiyosaki, author of "Rich Dad Poor Dad", tweeted that BTC will fall to $24,000. He called Bitcoin the world's biggest bubble and said he would buy more gold. Earlier, he had repeatedly urged investors to invest in Bitcoin during the crash.

It is worth noting that even though Bitcoin has almost halved from its highs a few months ago, many institutions and investors have expressed optimism.

On the eve of the New York City mayoral race, Democratic frontrunner Eric Adams gave a brief nod to the world's largest cryptocurrency. "I will guarantee you that a year from now you're going to see a different city," Adams said. "We're going to be the center of life sciences, the center of cybersecurity, the center of self-driving cars, the center of drones, the center of Bitcoin."

On June 24, Galaxy Digital CEO Michael Novogratz said in an interview with CNBC on the Bitcoin market on Tuesday that he was not nervous about the price drop of Bitcoin, even if it fell below $30,000. "This ecosystem is already very mature, and the players who are entering are much more mature. Every bank is working on their own cryptocurrency projects." "If it really falls below $30,000, then $25,000 is the next big support level. I think a lot of customers who didn't buy it the first time will see this low price as an opportunity to buy and participate."

Ricardo Salinas, the third richest man in Mexico, said in a conversation with Blockchain Land executives that 10% of his assets are in Bitcoin. He said that all the benefits of Bitcoin qualify it as a modern form of gold, it is easy to carry and enjoys extremely high liquidity internationally. And most importantly, the supply of Bitcoin is limited. In addition, he is not optimistic about altcoins, believing that altcoins have no potential to surpass Bitcoin.

In addition, Li Yang, chairman of the National Financial and Development Laboratory and member of the Chinese Academy of Social Sciences, recently said that Bitcoin cannot be considered a scam. It is a new digital asset. People can invest in it like investing in gold, but it is not a currency. Li Yang believes that after gold is demonetized, it has transformed into an investment object and is one of the various investable assets. The same is true for Bitcoin now. It is a digital asset. In this sense, it is at the same level as gold. From an investment perspective, Bitcoin is investable just like gold.

Interestingly, there are many people in the market who support the development of Bitcoin by “buying, buying, and buying”.

According to the latest official news on June 24, ARK Fund once again purchased 38,614 shares of Coinbase and 74,781 shares of Grayscale Bitcoin Trust.

Suze Orman, a personal finance guru and host of CNBC's The Suze Orman Show, said in an interview with NextAdvisor that she has purchased $5,000 worth of Bitcoin through Paypal. It is reported that this is the first time she has admitted to directly owning Bitcoin. Previously, Orman has talked about her interest in cryptocurrencies many times and invested in Microstrategy stock in June last year. Orman said that she bought Microstrategy stock because she found it easier than buying cryptocurrencies directly. In addition, Orman said that Paypal makes it easy to buy Bitcoin because it allows users to buy cryptocurrencies without creating external cryptocurrency wallets.

On June 23, the Bitwise 10 Crypto Index Fund purchased $502,428,024 worth of Bitcoin and Ethereum and other cryptocurrencies. The fund is traded in the over-the-counter market and its structure is similar to the Grayscale Bitcoin Fund (GBTC), but it is not limited to Bitcoin, it also has other cryptocurrencies. Among them, ETH accounts for 25% of the Bitwise Fund, Bitcoin accounts for 69%, and the total number of other cryptocurrencies accounts for less than 5%.

On June 22, Wang Chun, co-founder of F2Pool and founder of Stake.fish, tweeted: “I have purchased 1,100 bitcoins in the past few days and will continue to purchase in the future.”

On June 21, MicroStrategy CEO Michael Saylor announced on Twitter that MicroStrategy purchased another 13,005 bitcoins at a price of $37,617 per bitcoin for $489 million in cash. As of June 21, 2021, MicroStrategy owns 105,085 bitcoins with a total value of $2.741 billion and an average price of $26,080 per bitcoin.

It can be seen that although the expected tightening of global quantitative easing will cause crypto assets and other risky assets to weaken to a certain extent, this round of bull market is not only caused by global quantitative easing, but also includes the joint effect of multiple other elements. This includes Bitcoin is building its own "global consensus", and how Bitcoin will develop in the future is worth looking forward to.