The good old days – when are you coming back? Some of you may remember the year 2017. While the Bitcoin price was quoted at the beginning of the year, at the tender of$ 1,000, paid a late entry to the end of the year to 20,000 USD for a BTC. While Bitcoin is currently trading at a price of about 9,500 dollars, some are questioning what time is and whether the year 2017 will repeat?
In this article, we look at this, the opinion of Charles Edwards. He, in turn, is Digital Asset Manager at Capriole and said in a recent Tweet, what it need, in order for the Bitcoin exchange rate climbs again in the direction of the $ 20,000.
Bitcoin exchange rate, and the longing for 20,000 USD
At the core of his Narrative was the growing interest of institutional investors. Increasingly, companies such as Fidelity or Grayscale reports on the increased demand for their products. Charles Edwards takes up this theme now to a recent Tweet from the 23. July.
Let’s first look at his Tweet:
If US banks put just 1% of their assets into #Bitcoin as an investment, hedge or insurance…
… the Bitcoin price more than doubles.
Just 1 NASDAQ stock (Grayscale) already owns 2% of circulating Bitcoin supply today.
It’s not hard to see where this is going. pic.twitter.com/i3oqPTcAPl
— Charles Edwards (@caprioleio) July 23, 2020
As we can see, Edwards argues that banks should only invest 1% of their Assets in Bitcoin, so that we can exceed the$ 20,000. In the process Edwards tackles also the versatile possibilities that Bitcoin offers investors.
Because, to use in addition to the pure possibility of BTC as an Investment, he calls the possibilities of the ‘Hedge’ and ‘Insurance’. Thus, Edwards is on the properties that Bitcoin as a hedge (engl. hedge), or insurance (engl. insurance) can be used. This is especially true for the current dynamics of monetary policy.
US banks are part of the mix now in the Bitcoin business
Furthermore, Edwards mentioned that the Grayscale is already around 2% of the outstanding Bitcoin. That such a Big Player then leads correspondingly to a shortage of supply, it is needless to say. Thus, a positive effect for the Bitcoin course, also follows directly.
The Timing of the statements of Edwards is good. So-spread just this week, the message that US banks are in the business of custody may be involved. It is established that the increased interest of institutions leads to the fact that Bitcoin is gaining as an Asset to maturity. Important aspects of pricing and information transparency will be fueled by such investors.
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The comments in this article do not represent any trading recommendations or investment advice.