Bitcoin Macro: Analysts See a Rising Wave of Investments among Millionaires

October 12th, 2019

Gone are the days when Bitcoin used to trade only via cryptocurrency exchanges. In 2019, numerous institutional platforms started providing products and services on digital assets. The development was seen with Custody, Trust funds, trading portals, and derivates market.

Michael Novogratz, the founder of Galaxy Digital, recently reiterated his stand on the institutional interest. Earlier, he had expressed similar views saying they’re coming, but things take time. He stated that institutions tend to follow the funds like Yale, Harward, and Stanford endowments.

Willy Woo, an on-chain crypto analyst, supported the rising interest of high volume investors with credible data. The number of addresses with more than 1,000 Bitcoins has risen linearly since this time around last year.

bitcoin macro view
Number of Bitcoin Addresses with more than 1000 BTC (Source)

Woo seemed to draw similarities between the geeks of Bitcoin’s early days and other high volume investors. He tweeted,

IMO we’re likely in a new renaissance of Bitcoin, this one is powered by capital influx of high net worth investors, while the early one was from the tech savvy who were bootstrapping the network.
Super Bullish.

Bitcoin’s Revised Value Proposition

Bitcoin’s proposition as a store of value is particularly attractive in the current macro-situation. The rising debt crisis and quantitative easing, devaluation of currencies, political tension in Hong-Kong, and even the threat from China’s digital currency. Novogratz said,

We’re in a very strange macro environment… When Greece is raising money at negative interest rates. I look back just in the last five years there 40 emerging market currencies that have devalued more than 40%.

Mati Greenspan has also spoken about Greece, a country which was at the brink of collapse 5 years ago is now raising money at negative interest rates. Greenspan said,

Watching economists on the television this morning try to pass this off as ‘normal’ and ‘sustainable’ is literally making me sick to my stomach.

Moreover, he also suggested that the US must be apprehensive of the Chinese digital currency and why it shouldn’t be totally dismissive of Libra. The Chinese and its counterparts already use Alipay and Wechat to conduct more than 90% of their transactions. A state-powered cryptocurrency could provide a lot of control and dominance to China.

According to him, the need of the hour is the growth of decentralized transactions, led by Bitcoin. He said,

Quite frankly when I look at change and Hong-kong, I see how its gonna end. It’s not gonna end with tanks rolling down the street. It’s gonna end with what they called white terror. That they’re slowly gonna say, you know, that guy doesn’t get credit anymore or that guy doesn’t get jobs anymore.