In recent months, an increasing number of big giants are investing their money in bitcoins. While some have speculated that these companies intend to maintain their Bitcoin holdings for years, the commercial manager at Bitpay is unsure. It is assumed that these companies will be able to sell their stakes faster than originally planned if the price continues to rise.
“A lot of institutional buyers bought around $ 20,000, so this will be the end result of how low bitcoin is,” Sonny Singh told Bloomberg on Monday after his battle with the bearish bitcoin price movement.
“All these buyers who bought, they said, ‘They’ve been using bitcoins for three to five years now,’ which is good, but I think if the bitcoin price hits $ 45,000 in the next month or so, they say, ‘Wow you, we earned 2 times “,” You know, we no longer need a three-year horizon, let’s start selling some of them. ”
The interest of major players in Bitcoin began to increase in the second half of 2020, when companies such as MicroStrategy, Square, and MassMutual invested significant capital in Bitcoin.
“I was talking to someone who works at Skybridge,” said podcast editor Peter McCormack in a recent interview. McCormack said, “He said what you need to understand about MassMutual – they put in $ 100 million, but it’s not much money for them.” “They don’t want to sell next year, two or five years from now.”
But Singh’s comment makes the opposite argument. Institutional profits could trigger a new wave of Bitcoin sales. “Then you start seeing selling pressure of up to $ 200 million in sales orders, which the industry has never seen before,” Singh said. “It can cause a rush that makes things start to deteriorate very quickly, and it can drop from 45 to 40, to 35 to 30 or something like that, but I think the lower limit would be $ 20,000.”
Citing the lack of pressure from bitcoin sellers for now, Singh said he sees little of bitcoin hitting the $ 40,000 to $ 45,000 mark “next month or so.”