May 11 witnessed the third BTC halving. The reward now reduced to 6.25 Bitcoins per block mined. It is a method to reduce circulation. A finite supply ensures that price rises if demand is high.
Since the halving, BTCUSD managed to stay in the spotlight among the cryptos. Investors are trying to wrap their heads around the abrupt declines, and the sudden rises.
Institutions are accumulating vast amounts of BTC lately
Various analyst reports claim that the institutions are on a Bitcoin buying spree. Grayscale investment purchased around 25% of the new bitcoin mined coins. This number was less than 10% by the end of 2019.
Investments banks such as JP Morgan are paying close attention to BTCUSD. Some people say that even Goldman’s views about BTCUSD were a bluff.
Goldman Sachs informed its clients that BTC shouldn’t be considered an asset class. A section of people feels it was a bluff on Goldman’s part.
Bloomberg feels Fed’s money printing will push BTCUSD much higher
The Quantitative Easing (QE) measures taken by the central bank makes holding the fiat currency useless. The printing rate is much higher than the amount one can save. Therefore, it makes more sense to buy Gold, Bitcoin, silver, etc.
The BTCUSD daily chart shows the recent drops and upswings. Nobody can predict whether BTCUSD would rise or fall in the short term. However, investments are to be done, keeping a long term horizon.
The Bloomberg 2020 report on cryptocurrency starts with,
“Something Needs to Go Really Wrong for Bitcoin to Not Appreciate.“
The report also states that despite the increase in inflows to the Grayscale Bitcoin fund, the premium is declining. It is indicative of the fact that the supply is reducing in the market.