The bull case forming for Bitcoin
Ollie Leech, Fintech Zoom Learn Editor, joins Yahoo Finance to discuss the positive news driving Bitcoin‘s price higher.
– All right. Let’s take a look at what’s going on in the crypto corner with Bitcoin. Because wow, weren’t we just talking, what was it, about 10 days ago? $41,000 for Bitcoin? Oops, that was wrong. Look at this. It’s almost at 55,000 bucks, not quite at the 60. But are we headed there? Let’s bring in Ollie Leech, Fintech Zoom’s learn editor. He’s joining us from the North of England to learn us some things about Bitcoin specifically.
And October and November are, I’m going to use the word crucial, but they’re important months for investors in Bitcoin. Why October, November?
OLLIE LEECH: It’s one of those things that nobody’s really sure about. It’s one of those, is it a self-fulfilling prophecy? Is it because a lot of regulators and platforms push their updates and they kind of kick them towards the end of the year, and so everyone’s looking forward to that? We just don’t know. I mean, looking at it right now, everything seems to be coming together for Bitcoin. And interestingly how these cycles kind of flip on a penny is always interesting to see. Go back a couple of weeks, we were talking about DeFi, Ethereum, and now we’ve seen other altcoins starting to drop.
And now Bitcoin‘s in the driver’s seat. So 60% of quarterly candles in Q4 have been in the green. We know that much. So it just seems to be everyone’s anticipating something. And you’ve also got to take into consideration that this is a year after a halving, which is always an exciting time. And we just haven’t hit that 100K yet. So people are looking, are we going to reach that point yet? So yeah. It’s all eyes on the next couple of months. And it’s a really exciting time again.
SEANA SMITH: Ollie, we talked many times in the past about regulation. SEC chair Gary Gensler, he was in front of lawmakers again yesterday testifying. There’s actually 19 lawmakers who took the opportunity to ask Gensler about crypto regulation. Anything that you heard yesterday that stands out to you or really could be a part of the reason that we’re seeing this jump today?
OLLIE LEECH: I think it’s more to do with this kind of optimism around the ETF. This seems to be really driving a lot of that. Eric Balchunas from Bloomberg said there’s a 75% chance that we’re going to see an ETF happen soon. And this is driven, obviously, the futures ETF is what Gary Gensler is really looking to push forward. He believes that their safer, there’s more consumer protections around a futures ETF than a normal ETF. And that is in part of why he’s really pushing this one first. But there’s 20 ETFs stacked on his desk. And we’ve got approval for the ProShares Bitcoin ETF strategy on October 18.
And there’s another couple coming forward in November. So all eyes are on, are we going to finally get an ETF in the US? And this just seems to be pushing a lot of that.
– There was a statistic that something like 85% of Bitcoin is being held. It’s not being traded. What does that mean for those of us who are just the average investor?
OLLIE LEECH: Yeah, so it just goes to show, I think it was 155 days, I think I’m right in saying that’s the metric. And they were saying that now, the amount of wallets that have been holding Bitcoin for less than 155 days is at 20%. 80% is more than that. So it just goes to show that a huge amount of people now are optimistic. They’re holding Bitcoin. They’re not letting it go. That means if the average retail investor or any one wants to buy it now, they’re going have to go straight to the circulating supply that’s coming in from miners. So that supply is getting smaller and smaller by over the next course of Bitcoin‘s lifespan.
But the demand is growing. 80%, I’m sure we’ll see that number rise over time. Yeah, it just goes to show just the sheer demand for this asset is getting huge. And a big part of that has to do with the adoption that we’re seeing now. Look at the bank of Bancorp, America’s fifth largest bank. We’re seeing that that’s launched its own crypto custody service. We’re seeing Bank of America talk about its own coverage now. It’s just all coming together in a really nice way right now.
SEANA SMITH: Yeah, Ollie. That’s interesting. You bring up the institutional involvement. And we’ve talked about that a number of times in the past. In terms of the inflows though when it comes to on the institution side, has that matched expectations? Because if there was a lot of excitement around that at the start of the year. And then it hit a bit of a lull.
OLLIE LEECH: Yeah, we’re still seeing a huge amount of exchanges, and particularly funds are now starting to take in a lot of Bitcoin. We saw data from Bitrade that shows that funds from Europe, US, Canada have accumulated over 3,000 Bitcoin in the last four weeks alone. So they’re still taking on a lot of Bitcoin. That’s probably because we’re seeing so many banks. SE(BA) Bank in Switzerland is also looking to become a crypto custodian. So they’re anticipating a lot of institutional investors to get into this market. And they’re just looking to create services for those first clients.
So yeah. It’s definitely we’re still seeing a lot of people take up a lot of Bitcoin right now. It’s squashing our supply. And there’s a lot of interesting predictions for where we’re going to end up at the end of the year. And we’re just going to sort of see how they all play out.
– Ollie Leech is Fintech Zoom’s learn editor. We appreciate your being here on Yahoo Finance Live. All the best to you.