Boomers Interested In Bitcoin, Market Won’t Allow BlackRock To Buy BTC Below $60k
December 04 2023 - 5:00PM
NEWSBTC
As institutional interest in Bitcoin grows, Fidelity and
BlackRock’s proposed spot Bitcoin Exchange-Traded Fund (ETF) faces
an unexpected hurdle: the crypto market’s unwillingness to let go
of the coin at bargain prices. Bitcoin To $60,000 In
Progress? According to Mike Alfred, who claims to be a value
investor and a board director, the market will “unlikely” allow
BlackRock to purchase BTC below $60,000. Taking to X on December 4,
Alfred said BlackRock and other Wall Street players keen on issuing
spot Bitcoin ETFs would have to “buy for Boomer’s 401k plans for at
least $60,000.” This preview stems from the rapidly growing
demand among institutional investors, as seen by the number of Wall
Street players willing to issue complex derivatives tailored for,
among other investors, “baby boomers,” most of whom are
“approaching retirement.” With their substantial retirement
savings, baby boomers increasingly recognize BTC’s potential as a
hedge against inflation and a store of value. Related Reading: ADA
In The Spotlight: Heavyweight Investors Pile Into Cardano, What’s
Next? Following Federal Reserve intervention during the COVID-19
pandemic, inflation rose to multi-year levels in 2021. To preserve
purchasing power, the central bank began hiking interest rates.
Although inflation has fallen and the economy stabilized, it
remains higher than the target of 2%. The Fed continues to track
this metric and may further intervene by raising rates to lower
inflation. This might impact Bitcoin prices, as seen in the past
months. Nonetheless, the potential influx of boomer money into
Bitcoin via a Securities and Exchange Commission (SEC) and
Commodity Futures Trading Commission (CFTC) approved derivatives
product is a big boost for the coin. Though the SEC has yet to
authorize multiple spot Bitcoin ETFs, the crypto and Bitcoin market
expects the strict regulator to greenlight the first product in the
next few weeks. BlackRock And Company To Buy BTC At A Premium
Accordingly, ahead of this milestone development for the Bitcoin
and crypto market, Alfred thinks BlackRock, Fidelity, and other
players won’t secure Bitcoin at spot rates. Instead, the market
anticipates that BlackRock, one of the world’s largest digital
asset managers, will make their “bi-weekly purchases at prices
above $60,000.” Related Reading: Bitcoin Cycle Analysis And Macro
Factors Reveal When Price Will Reach $125,000 The coin is trading
at April 2022 levels, ripping above $40,000 over the weekend as
bulls step up. Looking at the BTC candlestick arrangement on the
daily chart, the first clear resistance is around $48,000.
The coin trades within a bullish breakout formation following gains
above $32,000. As buyers step up and investors anticipate the SEC
approving the first batch of spot Bitcoin ETFs, the coin will
likely continue increasing toward all-time highs of around $70,000.
Feature image from Canva, chart from TradingView
Cardano (COIN:ADAUSD)
Historical Stock Chart
From Jul 2024 to Aug 2024
Cardano (COIN:ADAUSD)
Historical Stock Chart
From Aug 2023 to Aug 2024