Will institutions keep Bitcoin for years as initially thought, or will they sell it for a quick profit?
A growing number of traditional giants have invested their money in Bitcoin in recent months. While some speculate that these companies intend to keep their investments in Bitcoin for years, the Bitpay CCO isn’t so sure. He thinks these companies may sell their holdings earlier than originally planned, if the price continues to rise.
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„Many of the institutional buyers bought about $20,000, so that would be my floor to know how much Bitcoin Blueprint review could go down,“ Sonny Singh said in an interview with Bloomberg on Monday, after an episode of Bitcoin’s downward price action.
„All those buyers, they said ‚Oh, they were in Bitcoin now for a three- to five-year time horizon,‘ which is great, but I think if Bitcoin hits $45,000 next month or so, they’ll say, ‚Wow, we just made twice as much, you know, we don’t need that three-year horizon anymore, let’s start selling something.
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The interest of big players in Bitcoin started to heat up in the second half of 2020 when companies like MicroStrategy, Square and MassMutual put significant capital into Bitcoin.
„I was talking to someone who works at Skybridge,“ said podcaster Peter McCormack during a recent interview. „He said what there is to know about MassMutual, they have invested $100 million, but that’s not a lot of money for them,“ McCormack said. „They don’t expect to sell next year, or in two or five years.
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However, Singh’s commentary presents a counter-argument. The institutional profit pool could stimulate a new wave of BTC sales. „Then you start to see $200 million in sales pressure on sales orders, something the industry has never seen before,“ Singh explained. „That could cause a catapulting event to cause things to start going down pretty quickly and I could see it go down from 45 to 40 to 35 to 30 or things like that, but I think the floor would be $20,000.
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Noting the lack of sales pressure on BTC at present, Singh said he sees few obstacles in the way of BTC reaching $40,000 to $45,000 „in the next month or so.