In this somewhat late Bitcoin lunch, we look at the live Bitcoin price and the prices of the top 25 crypto. Then we look at what categories of new investors are entering the market and how they interpret the BTC price.
We begin, of course, with the live Bitcoin price and the prices of the top 25 crypto.
Live Bitcoin price and prices top 25 crypto rise
At the time of writing, the live Bitcoin price is quoting EUR 28,357.71 ($30,403.44). This is 3.20% higher than during our Bitcoin lunch yesterday.
The prices of the top 25 crypto are also positive except for a few stable coins. The biggest gain of the day so far is at + 13.16% for ChainLink (LINK). On the site of Tradeincrypto.com you can analyze all live crypto prices 24 hours a day.
With Bitcoin still trading within the consolidation zone and we discussed yesterday what key prices go with that, today we look at what new types of investors are getting into Bitcoin and what influence they are having on the market.
Institutional investors pump confidence into Bitcoin
By now, institutional investors cannot be called “new,” but what is new is the fact that they are becoming dominant in trading known crypto like Bitcoin.
This means that a lot of money is becoming available to drive the BTC price. Sometimes they even seek additional money. For example, MicroStrategy borrowed $2.4 billion to invest in Bitcoin. These loans are designed so that they do not have to be repaid immediately in fiat money. For example, much of the loan is converted into shares upon expiration of the loan term. Also, the BTC to be purchased serve as collateral for another part of the loan.
The benefit to the crypto market is that it allows one to see that there is and will be high demand. With that, the market seems to be able to count on rising prices and a bear-rally is slowed down. On the other hand, the BTC price has to stay above $20,000/$21,000 to ensure that the collateral is enough to cover the loans. This makes shareholders of the publicly traded MicroStrategy nervous. Consequently, the share price has been falling for some time.
Indirect BTC investors continue to buy
Another category of investors showing increasing interest in Bitcoin is that of ETF buyers. In America, many companies are prohibited from buying BTC and other crypto directly. They solve this by creating a fund that buys crypto. The shares in that fund are then freely tradable. Trading in those shares is allowed for companies that are not allowed to buy crypto directly.
Again, of course, it’s good to see more demand for BTC and other crypto. Another effect is that it makes crypto prices more predictable.
This is because the companies that run ETFs charge a premium for their services. When there is a bear trend there are fewer buyers and these providers offer hefty discounts on their premiums. When there is a strong bull expectation, prices often rise sharply and a premium sometimes even has to be paid on the premium. Thus, tracking these premiums provides insight into the position ETF holders are taking.
Billionaires see Bitcoin as new toy
Anyone who thinks of Bill Gates or Warren Buffet when they think of billionaires may conclude that there is not much incentive among billionaires to get into crypto. However, this turns out to be a misconception.
In fact, research by Forbes among the 65 richest people in the world shows that 30% of them invest in crypto. This is higher than the percentage of crypto investors among non-millionaires, as it is 16%.
18% of those surveyed reported investing 1% or more of their fortune in BTC and other crypto. 3.2% of them even have at least half of their fortune invested in crypto. You can read the entire Forbes survey here.
Their direct influence on the market may not be too great, but indirectly they are very important. For example, their adoption of crypto makes it easier for other investors to get into crypto. In addition, these billionaires are often owners of large companies. If they transfer and apply the value of Blockchain technology and crypto in their companies, this will create many additional user cases and thus additional demand.
Staying up to date with the latest stock price developments?
You can always follow the developments yourself with our WANT crypto analyses or the background articles and previews on the crypto market and Bitcoin. Of course, you can also follow the live quotes 24 hours a day if you want to stay informed in real time. Are you interested in other investments besides crypto? Then our weekly Monday morning price forecast might be a reading tip. “Please note: We never give financial advice, so our contributions can’t be interpreted that way either. Always do your own research and decide on rational grounds if, when, what and how much you want to invest in.”