The rapid institutionalization of Bitcoin has attracted a lot of attention worldwide. In addition, it has aroused the investment interest of many institutional investors, family offices and retail traders, and brought the HODL wave.
In the latest issue of Pomp podcast (one of the most popular podcasts in the US business and investment field, Youtube has more than 120,000 followers), Raoul Pal will take us to the big names of the 90s Closed-door conversation between. Prior to the historic bull market in 2017, the barriers to entry into Bitcoin were relatively low, but this changed the cryptocurrency and the world economy as we know it.
As the main driver of the Bitcoin price chart, its volatility has led to a rapid rise in Bitcoin’s market value. Raoul is a technical analyst. Due to the volatility of the triangle chart on the Bitcoin chart, he invests more than 50% of his liquid cash in Bitcoin.
The propensity for high return on investment made him go higher, and this was before prices started to rebound. Unlike maximalists or Bitcoin proponents, traders and investors who consider themselves macro investors use their liquid cash to take big risks on Bitcoin.
Behind the scenes, almost everyone has a personal configuration of Bitcoin. Dan Moorehead, Novogratz, and others, a whole generation of macro investors have grown together, moving from one type of transaction to another, increasing their exposure to Bitcoin. No matter where it is in the market cycle.
These investors bought Bitcoin at a price of US$8,000, and lived to buy it at a lower price before. Large macro participants believe that Bitcoin has a huge impact on huge amounts of money.
When most hedge fund managers suffered from low volatility (which did more harm than good to their portfolio performance), they turned to Bitcoin because of its high volatility and high return on investment.
For macro investors and big speculators, Bitcoin has a “parallel universe”, which explains the rapid institutionalization and growing market value of Bitcoin, as well as the increasing network momentum and volatility. The Grayscale Bitcoin Trust Fund, which reflects the performance of Bitcoin, is such an institutional player, which leads the market to buy Bitcoin regularly every week.
Since the price of Bitcoin broke through USD 10,000 in July 2020, market accumulation has continued even if it exceeds USD 18,000. This indicator has continued to drive demand for Bitcoin.
The pre-bull market and continued price increases have triggered more conversations and subsequent conversations about the further integration of Bitcoin in the world economy. For retail traders, the closed-door conversation is very clear, because this time there are almost no signs of FUD (Fear, Uncertainty, Doubt, meaning fear, confusion, doubt, a marketing tool).
If Bitcoin closes above $20,000 in 2020, the market cycle may enter a new phase.
