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⚡BTC: The Go-To Asset for Institutions🏦

Croxroad

30 Oct 2023 — 4 min read

☕️ GM Dear Plebs!

Here is Crox Road, your daily dose of orange pill that will turn you into a Bitcoin Maxi.

The menu for today:

⛵ BTC's Status as Institutional Darling

In a recent data sheet shared by Michael Saylor, who's a well-known supporter of Bitcoin and the CEO of MicroStrategy, it's crystal clear just how much of a heavyweight champion Bitcoin has become in the world of investments. If you take a closer look at the returns from different asset classes dating all the way back to 2011, you'll see that Bitcoin has consistently been outshining its competition. Even though the market has seen its fair share of ups and downs, Bitcoin has stood strong, maintaining a remarkable upward trend year after year that no other type of investment can match. It's like the digital gold that just keeps on shining, and Saylor's data proves it.

Over the span of 2011 to 2023, Bitcoin's performance is nothing short of mind-blowing. It clocked in a jaw-dropping cumulative return of 1,120,785%, with an annualised return rate of 147.5%. These numbers are absolutely staggering, especially when you stack them up against other asset classes like the U.S. Nasdaq 100 or U.S. Large Caps. While these traditional investments are no slouches themselves, they're clearly playing catch-up, falling considerably behind Bitcoin in terms of returns.

Taking a closer look at MicroStrategy's Bitcoin portfolio unveils a compelling story. Under the guidance of Michael Saylor, the company has displayed a strong bullish sentiment towards Bitcoin. Their current holdings are a substantial 158,245 BTC, valued at roughly $5.43 billion. What's fascinating is how they've strategically built this portfolio, making well-timed purchases during Bitcoin's price drops and then capitalising on its upswings. This sizable investment from a major institution underscores the growing confidence in Bitcoin's long-term potential and its reputation as a store of value. Their approach to Bitcoin is all about steady accumulation, as you can see from the green purchase markers on the graph, indicating a consistent strategy of buying the dips and emphasising a bullish, long-term stance on the cryptocurrency. This faith in Bitcoin is further evidenced by their total dollar cost average and the current market price of Bitcoin, showcasing healthy returns on their investments.

⚡ ETF Approval's Influence

This week, the big buzz in the world has been all about the potential approval of a spot Bitcoin ETF, and it's not surprising given the excitement it generated. Earlier, Bitcoin's price took a sharp upward swing, hitting $35,000, a level we hadn't seen in quite some time. The catalyst for this surge was the sudden appearance of a listing for a spot Bitcoin ETF with the ticker symbol iBTC on the Depository Trust and Clearing Corporation (DTCC) website, which is associated with BlackRock's BTC ETF. However, the ticker mysteriously vanished shortly after, causing a minor dip in prices. But the good news is that it reappeared a few hours later, keeping the community on its toes. The world is certainly keeping a close eye on the potential impact of this ETF's approval.

The appearance of the iBTC ticker on the Depository Trust and Clearing Corporation (DTCC) website sent shockwaves through the market, fueling speculation that the approval odds for a spot Bitcoin ETF have significantly increased. In response to this excitement, popular BTC analyst Pentoshi decided to make some speculative predictions about Bitcoin's future, should an ETF get the green light. It's important to note that Pentoshi emphasised the uncertainty beyond ETF approval, stating that "nobody knows what will happen AFTER, not BlackRock [...] Literally nobody." However, taking into account the growing optimism among ETF experts and Bitcoin's fixed supply in a world of rampant currency printing, Pentoshi offered an intriguing guess. According to the analyst, the long-term downside could be around $19,000 to $20,000, while the upside potential could reach as high as $180,000 in the next five years. Pentoshi's message reminds us that, despite the short-term noise, there are strong long-term reasons to hold and believe in Bitcoin.

🪆 Mat-Hold

A mat hold pattern is a candlestick formation that provides insight into the ongoing direction of a previous trend. This pattern can be either bullish or bearish. In the case of a bullish mat hold pattern, it commences with a substantial bullish candle, followed by a gap higher and three smaller candles that trend lower. Crucially, all these smaller candles need to maintain their positions above the low point of the first candle. The fifth and final candle in this pattern is a large one, moving upward once more. Importantly, this pattern typically occurs within the context of a broader uptrend in the market, indicating a potential continuation of that bullish trend.