Markets

Explanation of the large Bitcoin accumulation

Inspired by BlackRock, Fidelity, Invesco, and WisdomTree, they have stepped forward in recent days to launch their own bitcoin exchange-traded funds, prompting experts to whisper “great accumulation.”

Valkyrie Investments, which received approval for a Bitcoin futures ETF in 2021, has applied for a spot ETF. Let’s examine the current state of the crypto market.

What is happening in the cryptocurrency market?

Bitcoin (BTC) has been in shambles, gaining 15% in the past week alone, the most among the top 10 cryptocurrencies by market cap. Solana came in second with over 9% growth, followed by Ethereum with 8%.

On-chain metrics paint an interesting picture, showing that Bitcoin addresses holding between 100 and 1000 BTC buy about 36% of all new Bitcoin created within 24 hours. The Bitcoin software issues a reward of 6.25 BTC for each successfully mined block.

Since a new block is mined approximately every 10 minutes, the mining algorithm issues about 900 coins each day on average. The big owners buy about 36% of this daily ration.

On the contrary, the so-called whales (addresses with a minimum of 1000 BTC) behave differently, selling about 70% of all mined coins per day, as the assets of large investors flow into smaller ones.

Excitement builds for the Valkyrie app

Sources said that Valkyrie’s Bitcoin Fund will hold cryptocurrencies indicated by CME’s CF Bitcoin price instead of cryptocurrency futures contracts. If the US Securities and Exchange Commission (SEC) approves Valkyrie’s application, the company will list the Nasdaq Bitcoin ETF under the ticker BRRR.

The Securities and Exchange Commission (SEC) approved the Valkyrie Bitcoin Strategy ETF based on bitcoin futures in October 2021. Three months later, the company launched another investment vehicle to track shares of listed bitcoin miners.

The excitement surrounding Valkyrie’s new app can be attributed to the SEC not rejecting BlackRock’s previous ETF applications. The company is the largest investment firm in the world in terms of assets under management.

Accordingly, many saw BlackRock as the mainstream funding acceptance of Bitcoin. Cryptocurrency enthusiasts attribute Bitcoin’s growth above $30,000 to ETFs.

Winklevoss Says ETF Orders Indicate ‘Great Accumulation’ Beginning

The growing interest in building infrastructure for capital investment in Bitcoin may also signal the beginning of a large Bitcoin accumulation.

Cameron Winklevoss, co-founder of the Gemini crypto exchange, confirmed that Bitcoin is in the early stages of a bull market. Digital asset enthusiasts can expect exciting times.

Winklevoss argue In a recent tweet stating that it is never too late to buy BTC.

“The massive buildup of bitcoin has begun. Anyone watching the ETF deposit spree understands the window to buy pre-IPO bitcoin before ETFs launch and the floodgates quickly close.

If Bitcoin was the clearest and best investment of the past decade, then this is probably the clearest and best trade of the decade.”

What does Michael Saylor think?

Michael Saylor, formerly President of MicroStrategy supported The idea of ​​an imminent bull market.

“The window for forward managed institutional demand for Bitcoin is closing.”

However, MicroStrategy’s choice of bitcoin as its sole cryptocurrency investment and Saylor’s steadfast interest in its growth suggest his comments should be treated with caution. The billionaire previously made far-fetched claims about the origin.

MicroStrategy has regularly added BTC to its balance sheet since 2020. Recent price increases have caused the company’s investments to break even. The company bought 140,000 BTC at an average price of $29,903 per coin.

The investment value is 4.17 billion dollars.

MicroStrategy’s Bitcoin Holdings Smashed Even | source: Saylortracker

It seems that major bitcoin investors can influence small investors to act. As noted by Series Analyst Nansen, the bull market outlook will hinge on regulatory certainty around digital assets in the United States.

For the latest Bitcoin (BTC) analysis from BeInCrypto, click here.

Disclaimer

Adhering to the Trust Project’s guidelines, BeInCrypto is committed to providing unbiased and transparent reporting. This news article aims to provide accurate and timely information. However, readers are advised to independently check the facts and consult with a professional before making any decisions based on this content.

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