bitcoin Demand Surge Anticipated in Q3,Says Bitwise CEO
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the CEO of Bitwise, Hunter Horsley, has indicated that substantial bullish momentum is expected for Bitcoin in the third quarter of this year. In a recent post on X, Horsley stated that “a lot of demand” is coming for Bitcoin in Q3, attributing this forecast to impending merger and financing deals by companies poised to integrate Bitcoin into their treasury strategies.
These firms are expected to be significant drivers of Bitcoin buying pressure and price appreciation throughout 2024.
Did You Know? As of June 2024, approximately 19.7 million Bitcoin have been mined, leaving less than 1.3 million Bitcoin left to be mined.
Bitcoin Treasury Strategies: Key Players
Several companies have publicly announced intentions to incorporate Bitcoin into their treasury reserves, but have not yet finalized these plans.
- Beyond Twenty One Capital: This company is in the process of merging with Asia Star Acquisition Corp (ASST).
- Strive: While the merger is pending,Strive secured $750 million to initiate its Bitcoin treasury business.
- Trump Media & Technology group (DJT): DJT recently received SEC approval to proceed with its Bitcoin treasury strategy, unlocking $2.3 billion in capital raised from institutional investors for Bitcoin purchases.
Incumbents Expand Bitcoin Holdings
While new entrants prepare to enter the Bitcoin market, established players continue to increase their holdings.
- MicroStrategy (MSTR): On Monday, microstrategy announced the acquisition of 11,931 BTC for $786.0 million.
- Metaplanet: Metaplanet announced the purchase of additional BTC, bringing its total holdings to approximately 10,000 BTC.
Pro Tip: Diversifying investments across different asset classes can help mitigate risk and enhance portfolio stability.
Bitcoin Price Predictions and Market Dynamics
In December, Bitwise predicted that Bitcoin could reach $200,000 in 2025. Horsley suggested that once Bitcoin trades between $130,000 and $150,000, holders will be less inclined to sell, opting instead to borrow against their holdings.
“From there on, when people need liquidity, they are going to borrow from an ever growing set of lenders,” he said. “All of which will further propel price. There’s simply not going to be enough Bitcoin.”
Currently, Bitcoin is trading near $61,000, demonstrating resilience despite recent market fluctuations.
Here’s a summary of key Bitcoin treasury activities:
| Company | Bitcoin Activity | Capital/Holdings |
|---|---|---|
| Beyond twenty One Capital | Pending Merger | N/A |
| Strive | secured Funding | $750 Million |
| Trump Media & Technology Group (DJT) | SEC Approved | $2.3 Billion |
| microstrategy (MSTR) | Recent Purchase | 11,931 BTC |
| Metaplanet | Increased Holdings | ~10,000 BTC |
What impact do you think these treasury strategies will have on Bitcoin’s price?
How will increased institutional adoption affect the average investor’s access to Bitcoin?
Bitcoin: An Evergreen Perspective
bitcoin, launched in 2009, is the first decentralized cryptocurrency, operating on a technology known as blockchain. Its finite supply of 21 million coins distinguishes it from fiat currencies, which can be printed by central banks. This scarcity is a key factor driving its value proposition as a hedge against inflation.
the adoption of Bitcoin by institutional investors and corporations marks a significant shift in its perception from a speculative asset to a legitimate store of value. This trend is expected to continue as regulatory frameworks become clearer and more institutions seek exposure to digital assets.
Frequently Asked Questions About Bitcoin
What is a Bitcoin treasury strategy?
A Bitcoin treasury strategy involves a company allocating a portion of its cash reserves to purchase and hold Bitcoin as a long-term investment.
Why are companies adopting Bitcoin treasury strategies?
Companies adopt Bitcoin treasury strategies to diversify their assets, hedge against inflation, and potentially benefit from the appreciation of Bitcoin’s value.
What are the risks associated with Bitcoin treasury strategies?
The risks include Bitcoin’s price volatility, regulatory uncertainty, and potential security breaches.
How does the SEC’s approval affect Bitcoin treasury strategies?
SEC approval provides regulatory clarity and legitimacy, encouraging more companies to consider Bitcoin treasury strategies.
What is the future outlook for Bitcoin adoption by corporations?
The future outlook is positive, with increasing adoption expected as Bitcoin gains wider acceptance and regulatory frameworks become more defined.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult with a qualified financial advisor before making any investment decisions.
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