In a press release through X (previously Twitter), Hunter Horsley, CEO of Bitwise Invest, shared insights from a latest memo to advisors and institutional purchasers penned by Matt Hougan, Bitwise’s Chief Investment Officer. The memo heralded the onset of a brand new period for Bitcoin, likening its present trajectory within the monetary markets to having an ‘initial public offering’ (IPO) second, signaling a significant shift in value discovery mechanisms for the cryptocurrency.
Bitcoin’s IPO Moment
Hougan’s memo elaborates on the seismic shift throughout the Bitcoin funding panorama, stating, “Previously, only a fraction of the world’s investors could access Bitcoin—mostly self-directed retail investors and technologists. That group drove the price above $40,000. Now, thanks to the ETFs, every investor in the world—financial advisors, family offices, institutions, endowments, and others—can access Bitcoin.” This transition is likened to “going from 10 normal people bidding on a house to 100 very wealthy people bidding on a house, overnight,” thus naturally propelling the value upward.
Emphasizing the magnitude of this shift, the memo reads, “It’s like bitcoin had its initial public offering and the market is now finding its true price,” underlining the transformative affect of ETFs in democratizing entry to Bitcoin for a world pool of traders. With the world’s asset and wealth managers controlling roughly $115 trillion in capital, a modest allocation of 1% to Bitcoin may end in over $1 trillion of shopping for stress, a determine that’s roughly equal to Bitcoin’s present market capitalization.
The memo additionally attracts consideration to the pivotal position of long-term Bitcoin holders on this new period of value discovery. With Bitcoin ETFs buying greater than the full new provide generated by miners, the choice of those long-term holders to promote or maintain may considerably affect market dynamics. Hougan notes, “Close to 70% of all bitcoin hasn’t moved in a year,” suggesting a strong holding sample amongst traders which may set the stage for value escalations as demand continues to surge.
Further reinforcing Bitwise’s bullish outlook, Ryan Rasmussen, a researcher on the agency, offered a tangible value goal throughout a Yahoo Finance interview. He affirmed, “We think that Bitcoin will certainly set all-time highs in 2024…We still stand by that prediction. […] That previous price is around $69,000, but we think it won’t stop there, we will see at least a 10-15% bump over the all-time high […] That would take us to […] $88,000, and I am still sticking by that with all the excitement in the market.”
“Ultimately what we’re seeing is crypto kind of rising from the ashes of the 2022 market,” Bitwise’s @RasterlyRock says on the crypto rally. “We think that we’re in a multi-year bull cycle and all elements of the crypto space will certainly have their moment.” pic.twitter.com/Fj1ohKUwjS
— Yahoo Finance (@YahooFinance) February 26, 2024
These projections and analyses from Bitwise’s management spotlight a consensus view of Bitcoin getting into a groundbreaking phase of price discovery. The narrative of Bitcoin’s ‘IPO moment’, coupled with expanded investor entry via ETFs and the steadfastness of long-term holders, crafts a compelling forecast of progress and new value benchmarks for the world’s main cryptocurrency.
At press time, BTC traded at $
Featured picture created with DALL·E, chart from TradingView.com
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