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Are Qatar And Middle East Tycoons Doubling Down On Scarce Bitcoin?

Bitcoinist

Bitcoin News / Bitcoinist 103 Views

Taking to X on December 4, Mike Alfred, who claims to be an “engaged value investor and board director,” said there have been rumors suggesting that Bitcoin (BTC) traders are facing increased competition from “Qatar’s sovereign wealth fund and other Middle Eastern investors.” 

Rising Bitcoin Interest From Qatar And The Middle East?

While the rumor has not been confirmed or denied, Alfred also claimed that Bitcoin is increasingly perceived as the “new oil,” considering its potential to disrupt traditional financial systems and reshape the global economy. As the crypto market surges due to events in the United States, Bitcoin has been rallying and trading at early Q2 2022 levels, around 2023 highs.

Looking at the Bitcoin candlestick arrangement in the daily chart, Bitcoin is at the forefront, reversing losses and helping inject capital into crypto. Thus far, the broader crypto market cap is up 2.70% in the last 24 hours to over $1.5 trillion. At spot rates, BTC is up roughly 170% from its 2022 lows and is firm, reversing last year’s losses.

Bitcoin price trending higher on the daily chart | Source: BTCUSDT on Binance, TradingView

It is not immediately clear what could have caused a shift and encouraged Qatar and Middle East investors to consider Bitcoin in their multi-trillion funds. However, what’s evident is that as institutions and countries pick out Bitcoin as a suitable hedge against inflation and an alternative to gold as a store of value, the extra capital will likely pump BTC to new levels, even above 2021 highs of around $70,000.

As it is, the expected approval of multiple Bitcoin ETFs by the US Securities and Exchange Commission (SEC) in the coming sessions further signals the official onboarding of the coin as a legitimate asset class accessible to Wall Street. These complex products would provide institutional investors with a regulated way to gain BTC exposure. 

De-Dollarization In Progress By BRICS?

Therefore, the reported involvement of sovereign wealth funds like that of Qatar marks a significant shift in the perception of the world’s most valuable coin. As mentioned, these funds, responsible for managing trillions of dollars, are typically risk-averse and invest in assets with established track records.

Their rumored willingness to allocate funds to BTC underscores the growing recognition of the digital asset’s long-term value and potential to reshape global financial markets.

Moreover, while the oil market remains crucial to the USD’s reserve status, Bitcoin’s potential adoption by oil-producing countries could also likely cause disruption. BTC serves as a medium of exchange and a store of value. 

However, if oil-producing nations begin accepting BTC as payment for their exports, it could significantly weaken the dollar’s dominance and pave the way for a more decentralized global financial system. Last week, it was reported that the United Arab Emirates (UAE) talked with other BRICS countries to de-dollarize and accept local currencies in oil trading.


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