As retail investors leave crypto in droves, is institutional money coming in to quietly buy the cream of the cryptocurrencies? Sell and perhaps get in lower? Bitcoin is at a critical juncture. A narrative going around social media platforms such as Twitter suggests that with the backdrop of the SEC enforcement actions against Coinbase and Binance, the liquidity and investor interest that would normally propel the next bitcoin bull market just isn’t there. Bitcoin is going sideways and downwards, and certain influencers and analysts believe that the latest rejection from the $31,000 price level is the start of a fairly large pullback that could be in the range of 30% for bitcoin and up to 50% for the altcoins. In this sort of very uncertain environment weak hands are going to sell and even stronger hands might be thinking to do the same thing with a view to improving their position a lot lower down. Fickle retail money vs institutional know-how So we perhaps have the perfect scenario for an institutional take over of cryptocurrencies that have been in the hands of retail investors ever since they came onto the scene. It must be wondered though just how fickle retail is. It is hardly any time at all since Larry Fink, CEO of Blackrock, the largest asset management firm in the world, said on national TV in the US that bitcoin was an “international asset” and “digitised gold”. Obviously, it’s not at all sure that the Blackrock filing for a Spot Bitcoin ETF will be approved, especially given Gensler and the SEC’s extremely negative stance on crypto. Be that as it may, Blackrock isn’t just any company. It is a behemoth, and has untold influence in Washington and across the world. It will surely get the business done at some point. A Washington Post article published on Saturday posits that the “tech-focused investors” have moved on from crypto and are now much more interested in artificial intelligence, and that the once crazy amounts of venture capital that used to be thrown at crypto has “slowed to a trickle”. When this kind of narrative becomes this strong, and the bitcoin halving only 280 days away, it’s a perfect time for big money to slowly start coming into the crypto space. It cannot be argued that crypto will provide the solutions for many issues, especially in finance, and therefore now could be a good time for entry. The narrative is established When Satoshi Nakamoto launched bitcoin in the time of the Great Financial Crisis of 2008, he meant for bitcoin to be bought by the people in order to save them from the next, probably even worse crisis. The average retail investor is scared though. Mainstream media has done its work, and so has the Biden administration, central banks across the world, and regulatory agencies such as the SEC. As this next financial crisis looms larger, retail needs to be brave and hang on in there. The alternative can be so much worse. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
