Bitcoin Touches $18.8k As World’s Largest Asset Manager Fuels Institutional FOMO

The Chief Investment Officer of BlackRock, world’s largest asset manager said bitcoin could take the place of gold to a large extent because crypto is “so much more functional than passing a bar of gold around”. I wish he would have said this a few years ago when one of my econ teachers was fighting me on why bitcoin didn’t satisfy the characteristics of money.

”Do I think it’s a durable mechanism that … could take the place of gold to a large extent? Yeah, I do, because it’s so much more functional than passing a bar of gold around”

-Rick Rieder

He ends the conversation with CNBC’s Squawk Box by saying that he’s not particularly a bitcoin bull and it’s unclear if it’s worth its current price over $18k.

Bitcoin has climbed for 7 weeks straight making it the longest streak since early 2017, when prices began their push toward the all-time-high.

Bitcoin is enjoying its four seven-week streak of gains since the eight-week run in early 2017. Source: TradingView, CoinDesk

Chainalysis produced a chart tracking ”investor-held” wallets, those whose coins rarely if ever move, versus “trader-held” wallets. As you may have assumed, trader wallets hold bitcoin that are more likely to be sold to take profits as prices rise. The number of such wallets has declined this year. The amount of investor-held bitcoin, meanwhile, has risen steadily.

Chart showing “investor-held” bitcoin (orange line) rising while “trader-held” bitcoin (yellow line) keeps falling. Source: Chainalysis

With optimism high where can bitcoin go after breaking $18.8k resistance? It’s likely that bitcoin will test $25k if it manages to pass the $20k physiological barrier. With enough momentum bitcoin will be looking to find a new ceiling around $25k-$30k. Again, once bitcoin passes $20k we will be in uncharted territory and we will no longer have any historic context to predict the next move.

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Cryptocurrency Research

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