Crypto 101

World’s Best Bitcoin Investors’ opinion on Bitcoin

Bitcoin’s fast development raised many concerns across the world. It also raised the interest and investment of institutional investors, family offices, and HODL waves in retail. Raoul Pal shares conversations that happened privately between Macro from the 1990s. The barrier to enter Bitcoin was shallow since the historic bull run of 2017, and it changed the landscape of cryptocurrencies and the world economy.

Bitcoin’s volatility led to this rapid surge in Bitcoin market capitalization. A Technical Analyst, Pal owed that more than volatility, the chart patterns like the triangular wedge pattern on the Bitcoin chart led him to invest 50% of his liquid cash in Bitcoin. The propensity for higher ROI took him all the way, and it was before the price rally started. Unlike Bitcoin proponents or maximalists, traders and investors who identify themselves as macro guys have taken Bitcoin risks with their liquid cash.

Almost everybody has a personal allocation in Bitcoin. A whole generation of macro investors went from one trade to the next, increasing the exposure to Bitcoin, irrespective of the position where it’s been during the market cycles. The investors purchased Bitcoin at $8,000 and bought it at the previous ATH. The big macro players have identified Bitcoin as a tremendous influence on an enormous amount of capital.

By the time Hedge Fund managers suffered from the vice of volatility, and had more harm than good to their portfolio performance, turned to Bitcoin for its high volatility and higher ROI. “A parallel universe” of Bitcoin existed for those in Macro and the abundant speculators.

This shows the rapid institutionalization and the growing market cap, network momentum, and volatility in Bitcoin.

The growth above $18K continued, and the metric has driven the demand for Bitcoin consistently since the price crossed $10,000 in July 2020. The pre-Bullrun and the price rally led more to conversations and dialogue on more Bitcoin integration in the world economy. Closed-door discussions are clear to the retail traders, for there is a little FUD sign this time around.

The market cycle can skip a phase if Bitcoin closes around $20,000 or higher in 2020.

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