Institutions are coming to crypto - retail investors beware

Institutions are coming to crypto - retail investors beware

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As the queue for a bitcoin spot ETF gets ever bigger, institutions are well aware that the time is approaching to finally get into bitcoin. Are retail investors just as aware?

Crypto to fall heavily?

A casual flick through crypto Twitter or any other social media channel is enough to ‘confirm’ that bitcoin and the crypto market are going to fall heavily and revisit the lows or even go beyond them.

Rottweiler Gensler and his Securities and Exchange Commission (SEC) may have had a few disappointments in their attacks on some of the bigger players in the crypto space, but the regulatory net is closing in and surely crypto can be suffocated enough to stop it in its tracks and allow the legacy monetary system to continue its unfettered domination.

Institutions are not stupid

However, Wall Street may be corrupt but money goes to money and institutions have finally realised that getting in on bitcoin is a complete no-brainer.

Of course, some way could be found by the likes of Blackrock and its other gargantuan bedfellows to try and manipulate bitcoin, just as has been done for decade upon decade by the banks on gold and silver.

Relatively small positions on futures markets are leveraged up to go short and force the price down, enabling the banks to buy in lower and then rinse and repeat, year after year after year.

However, bitcoin is a different animal, and manipulators beware as their paper positions, with no attachment to the underlying asset, and settled in cash, are likely to be swept away as the spot bitcoin is steadily bought up.

The stars are aligning

Wall Street shenanigans or not, those institutions are still coming, and the SEC being forced to grant the spot ETFs just might happen at the same time as the U.S. presidential race gets serious, and just as bitcoin is coming into its halving.

A loosening of Fed monetary policy and a bitcoin supply shock are potential factors for a bitcoin price explosion that takes the number one cryptocurrency to the top of its next cycle, perhaps in 2025.

Retail investors may get forced out 

Retail is no doubt suffering greatly as consumer prices continue to be excruciatingly high, house prices are falling, mortgages need to be refinanced (in the UK) at what could be 2 to 3 times the current rates, and jobs are dwindling as fast as AI is advancing.

Bitcoin was created as an alternative asset to fiat currencies, which are controlled by central banks in our debt-laden monetary system. Mainstream media would have us believe that all crypto is eventually going to zero, and much of it may do, but the reality is that ‘all’ fiat currencies will go to zero and there is absolutely no doubt that this has to mathematically happen.

On the other hand, bitcoin is most probably utterly unstoppable right now. Holding $BTC and averaging in is maybe a good way to go. Time horizons should also be long as mainstream adoption is perhaps still some years off. 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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