The mass accumulation of Bitcoin by institutional investors could lead to a shortage of the first cryptocurrency. This was stated by Dan Tapiero, co-founder of Gold Bullion International and 10T Holdings.
According to him, this will create higher demand for the coin and could push its price higher.
SHORTAGES of #Bitcoin possible.
Barry’s @Grayscale trust is eating up btc like there is no tomorrow.
If 77% of all newly mined turns into 110%, it’s lights out.
Non-miner supply will get held off mkt in squeeze.
Shorts will be dead. Price can go to any number. pic.twitter.com/4S4TrLNH8J
— Dan Tapiero (@DTAPCAP) October 14, 2020
«A Bitcoin shortage is possible. Grayscale is absorbing bitcoins as if tomorrow will never come. If 77% of all newly mined Bitcoins turns into 110%, a shortage occurs. Non-mining supply will be constrained by the market. This will destroy short positions and could push Bitcoin’s price to any value».
Another crypto trader under the nickname light believes that Bitcoin is in the midst of a “liquidity crisis” due to mass retail and institutional accumulation:
Bitcoin is experiencing the beginnings of a sell-side liquidity crisis.
It has always been like oil on crack. Production is entirely inelastic, demand meanwhile, is reflexive. pic.twitter.com/EDfiYabYpd
— light (@lightcrypto) October 10, 2020
«Bitcoin is experiencing the start of a liquidity crisis on the selling side. Production is completely inelastic, and demand is spontaneous», he wrote on Twitter.
As noted recently, major companies have increased their Bitcoin holdings.
In the third quarter totaled inflows into Grayscale Investments-managed cryptocurrency funds a record $1.05 billion.
In October, Stone Ridge Holdings Group, which manages assets of $13.4 billion, purchased 10,000 BTC (roughly $114 million).
Also, the payments company Square led by Jack Dorsey announced a $50 million Bitcoin purchase.
According to a September survey by analytics firm Pureprofile, 45 of 50 pension funds and insurers in the United Kingdom and United States, with assets of $78.4 billion, will increase their investments in cryptocurrencies over the next five years.
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