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Wall Street Gobbles Up Bitcoin Nearly 13 Times Faster Than It’s Made, Financial Guru Says

Bitcoinist

Bitcoin News / Bitcoinist 14 Views

Wall Street is on a Bitcoin buying spree, acquiring the digital asset at a staggering rate 12.5 times greater than its daily production, according to industry expert Anthony Pompliano. This relentless accumulation hints at big money’s growing conviction in the cypto’s future, fueled by the approaching “halving” event and the recent green light for ETFs.

Imagine printing money, then cutting production in half. That’s essentially what happens with Bitcoin’s halving, scheduled for April 2024. Every four years, the reward for mining new Bitcoins gets slashed, gradually reducing the total supply to a predetermined 21 million. This built-in scarcity is a major draw for institutions, who anticipate a price surge as demand outpaces supply.

Wall Street Loves Bitcoin

During a recent appearance on CNBC’s Squawk Box, Anthony Pompliano highlighted the considerable enthusiasm Wall Street exhibits toward the king coin, affirming, Wall Street “loves” bitcoin. “They are buying up 12.5x more BTC per day than the network can produce,” Pompliano said.

At the time of writing, Bitcoin was trading at $49,906, up 3.7% and 16.5% in the last 24 hours and seven days, data from Coingecko shows.

The arrival of Bitcoin ETFs in early 2024 was a turning point. These exchange-traded funds offer traditional investors a convenient way to gain exposure to the digital asset without directly buying it. Grayscale, the largest crypto asset manager, currently holds the lion’s share with over 475,000 Bitcoins, followed by heavyweights like BlackRock and Fidelity with substantial holdings.

But it’s not just ETFs. Investment firms like ARK Invest and VanEck are also dipping their toes in, collectively accumulating over 174,000 BTC units. Together, these purchases represent nearly 1% of the total Bitcoin supply, a significant chunk in a market known for its limited availability.

Top Crypto Asset To Reach New Heights

This strategic positioning isn’t just a reaction to the halving, it’s an anticipation. Industry analysts like Pompliano believe Bitcoin has the potential to reach new highs, surpassing its current $50,000 mark. The reasoning is simple: as the supply tightens due to the halving and institutional demand swells, basic economics suggest prices could follow suit.

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However, amidst the bullishness, a word of caution. Bitcoin remains a highly volatile asset, notorious for its dramatic price swings. Regulatory uncertainty also looms, with governments and central banks still figuring out how to navigate the crypto landscape. And let’s not forget the limited understanding of the long-term impact of widespread cryptocurrency adoption.

So, while Wall Street’s Bitcoin binge signals growing confidence, it’s crucial to remember the inherent risks before diving in. As with any investment, thorough research and a measured approach are key. Whether Bitcoin reaches new heights or experiences another rollercoaster ride, one thing’s for sure: the battle for digital gold is heating up, and Wall Street is at the forefront.

Featured image from Freepik, chart from TradingView


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