As reflected by recent market activities, the future of cryptocurrency, particularly Bitcoin, shows a strong narrative of growing institutional acceptance. The issuer of the dominant USD-pegged stablecoin USDT, Tether, purchased 1,529 Bitcoins valued around $45.4 million in Q2. This aligns with the plan announced in May, to invest 15% of quarterly earnings into Bitcoins.
Despite the substantial acquisition, the price of Bitcoin remained within recent ranges and down from yearly highs. The Q2 purchase augmented Tether‘s Bitcoin holdings to about $1.58 billion, marking it as a fierce rival for MicroStrategy– a foregoing corporate Bitcoin magnate.
Notwithstanding this competitive edge, MicroStrategy‘s planned sale of around $750 million stock, which in part, is intended for fresh Bitcoin purchases, could change the narrative. If successfully executed, the plan could add over 25,600 at the present price to MicroStrategy‘s already significant holdings.
The strategic reinvestment policies adopted by these companies per se underpin the Bitcoin price by introducing consistent and predictable buy pressure making Bitcoin an asset to be reckoned with.
The Bitcoin ETF application from the Wall Street giant BlackRock hints at a gradual shift towards greater institutional acceptance of Bitcoin. Reasonably, a surge in companies building up their Bitcoin portfolio, as well as institutional investors gravitating towards the asset is anticipated.
While bullish in a long-term perspective, these engagements do not guarantee immediate uptrends, as factors such as US SEC’s stern regulation against the crypto industry may induce short-term fluctuations.
However, given the increasing institutional adoption and the projected end of central bank hiking cycles, alongside reliable on-chain indicators, Bitcoin appears to be at the genesis of a new bull market. Making any accurate predictions on Bitcoin’s price is a long shot, but if past cycles are any touchstone, an upswing into the $100,000s seems plausible in the next two or three years.
Source: Cryptonews
