The rise follows more announcements of retail and institutional investment this week
After remaining in a daily tightening equilibrium since the drop at the start of September, Bitcoin price surged more than 7% over the last five days and is currently testing resistance at around $11,350. This recent rise could be prompted by Square Inc.’s announcement on Thursday that it had purchased $50 million in Bitcoin. Also on Thursday, Gemini CEO Tyler Winklevoss tweeted that this was just the start of the institutional Bitcoin investment tsunami.
CoinGecko released their Quarterly Cryptocurrency Report on Friday, which showed that Bitcoin was gradually losing market dominance to altcoins with a drop of 6.6% since July. It also suggested Bitcoin bulls were struggling to maintain Q2’s momentum due to September’s decline, but this doesn’t seem to be putting off investors.
Venture capitalist and Social Capital CEO Chamath Palipahitya shared his thoughts in an interview with CNBC last week where he suggested that Bitcoin would only reach astronomical levels through some degree of chaos: “… You buy it, you hold it, you put it away, and honestly I think you hope you never need it, because the amount of actual chaos that will drive bitcoin appreciation is not something we actually really want to see.” But, he added, “… if it does happen, I think it will create an enormous power of redistribution, and it will push power, it will push financial accessibility … to billions and billions of people, and in that I think there’s something to be really proud and excited about.”
On the other hand, Global Macro Investor CEO, Raoul Pal, gave an interview to Stansberry Research last week, in which he said: “… there is an enormous wall of money coming into this… just the pipes aren’t there to allow people to do it yet, and that’s coming. … Not because the world’s collapsing, it’s because there’s going to be adoption by the real large pools of capital.”
Pal recently increased his Bitcoin holdings to more than 50% of his portfolio, and stated in the same interview that he was thinking of selling his gold to buy more Bitcoin, something which on-chain market analyst Willy Woo predicted we’ll see more of in a tweet yesterday.
Looking to the future, many are keeping an eye on the proposed US coronavirus relief package. After the last round of stimulus cheques, many recipients invested theirs in Bitcoin.
OKEx CEO Jay Hao explained in a LinkedIn post back in June that Bitcoin price had surged by around 58% since the March stimulus Bill. Considering the announcement on Friday that the Trump Administration is preparing a $1.8 trillion dollar stimulus proposal, Bitcoin could be due for another boost.