Bitcoin's Great Accumulation Race Begins
Bitcoin's "Great Accumulation Race" heats up amid hopeful ETF applications Increase
There is new hope for a Bitcoin exchange-traded fund (ETF), which is making people want to buy more Bitcoin. This is being called “The Great Accumulation Race”. Over the last week, big companies like Fidelity, Invesco, Wisdom Tree, and Valkyrie have applied for a Bitcoin ETF with the US Securities Exchange Commission. This has caused Bitcoin’s price to go up by 19% to $30,240 since June 16.
Cameron Winklevoss, the co-founder of cryptocurrency exchange Gemini, said on June 21 that he thinks the major buying of Bitcoin by big companies and regular people has started. He suggested that buying Bitcoin before the ETFs are available is similar to buying a company’s shares before they are publicly traded. He also hinted that the opportunity to buy Bitcoin is "closing fast".
MicroStrategy’s Chairman Michael Saylor also talked about this. He suggested that regular investors might soon be replaced by big companies:
“The chance to buy Bitcoin before the big companies do is closing.”
Bitcoin is now being sold for $30,240. The Crypto Fear and Greed index has quickly gone from 49 (Neutral) to 65 (Greed) in just two days.
In an interview with CNBC, Bitcoin investor Anthony Pompliano said he expects a competition between regular investors and Wall Street:
“Both big companies and regular people are trying to get some of the 21 million Bitcoins that will ever exist. Regular investors have a head start and have bought all the Bitcoin that’s been mined and available, but 68% of that hasn’t been sold in a year.”
Bitcoin’s price is now very inelastic, or less affected by demand, more than ever. This is because of the recent ETF applications, which are attracting a lot of new investors. But, Dylan LeClair, a Bitcoin analyst and founder of 21st Paradigm, thinks that no ETF application will be approved by the SEC until early 2024.
