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Grayscale Bitcoin Trust's holdings have shown a clear slowdown in growth.
In its analysis this month, JPMorgan Chase pointed out that due to the unstable demand for the Grayscale Bitcoin Trust, it may be difficult for the price of Bitcoin to rebound above $40,000, and the current driving force of institutional capital flows behind the Grayscale Bitcoin Trust is not enough to allow Bitcoin to break through $40,000.
However, recently several financial institutions from Wall Street have announced that they are applying for or considering allocating Bitcoin in their portfolios. Tom Jessop, president of Fidelity Digital Assets, said last week that institutional demand for Bitcoin remains strong. 1. Many funds are very interested in Bitcoin .<br />Now, many hedge funds are very interested in Bitcoin.
The most exciting thing this month is the statement made by Ray Dalio, the founder of the world's largest hedge fund, Bridgewater Associates. On January 28, Ray Dalio pointed out in his daily newsletter column to clients that Bitcoin is a wonderful invention and that Bridgewater is considering using a new fund to invest in encrypted digital currencies in order to preserve wealth for clients when legal tender depreciates.
In the briefing, Ray Dalio had several core points:
1. Recognize that Bitcoin is a way to store wealth and an alternative asset similar to gold.
2. Bitcoin has the potential to disrupt the existing monetary system.
3. Bitcoin has successfully transitioned from the valley of death to something that may be valuable.
Earlier this month, Anthony Scaramucci, founder of Skybridge Capital, wrote that Bitcoin can be used as a long-term investment to avoid inflation. Improvements in infrastructure and regulation make Bitcoin investment "as safe as holding bonds and gold," such as the former U.S. Office of the Comptroller of the Currency (OCC) authorizing banks to provide cryptocurrency services. Skybridge Capital has established a $310 million Bitcoin fund this month.
In addition to hedge funds, some large asset management companies are also rushing into the market.
The world's largest asset management company BlackRock plans to invest in Bitcoin futures through its two funds, BlackRock Global Allocation Fund and BlackRock Fund. Howard Marks, who said last year that Bitcoin is an investment tool and a gambling game, said in a memo this month that his family holds a considerable amount of Bitcoin and other cryptocurrencies. Now Howard Marks has not made a new clear statement on Bitcoin, but only said that the previous doubts in his discussion with his family have not been confirmed.
Howard Marks is the founder of Oaktree Capital Management. He is as famous as Buffett and is one of the classic representatives of value investors.
Howard Marks is as famous as Buffett on Wall Street and is a role model admired by world-renowned value investors. Buffett once said that he would follow Howard Marks' memos. If Howard Marks changes his views on Bitcoin, it may affect Buffett, but Buffett still hates Bitcoin.
2. When will Bitcoin return above $40,000?
At the beginning of this month, Bitcoin halted its previous "long-lasting" rise. Although there have been many positive news, it has always been running below $40,000.
JPMorgan Chase believes this is due to a slowdown in inflows into the Grayscale Bitcoin Trust Fund.
However, many analysis agencies are optimistic about the future of Bitcoin this year.
Webull CEO Anthony Denier expects the price of Bitcoin to reach $55,000 by the end of this year. AMBcrypto published an analysis on January 31, saying that Santifeed data showed that Bitcoin, which had been dormant for nearly two years, began to move in large quantities. Some whales, miners and long-term holders have cashed out Bitcoin and realized profit, but institutions may buy more Bitcoin to continue to push up Bitcoin prices. Cryptocurrency analyst and economist Alex Krüger warned not to be too bullish on Bitcoin later this year, but he is still bullish on Bitcoin.
Bloomberg reported yesterday that since Musk "promoted" Bitcoin on Twitter, and the struggle between WSB and Wall Street hedge traders continues to escalate, Bitcoin may become the next "GME". According to CME data, the net short position of Bitcoin futures has now reached a record high, and hedge funds currently hold short positions of US$2 billion. |
