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Bitwise CEO Hunter Horsley has said institutions are leading Bitcoin’s recent rally, while retail investors remain on the sidelines.
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Several pundits believe the lack of retail presence in the current Bitcoin rally is bullish.
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Horsley has consistently waxed bullish on Bitcoin despite recent market turbulence.
After a turbulent few weeks, Bitcoin, the largest cryptocurrency by market capitalization, appears to have found its footing again. The asset inked an impressive 10% surge last week from $85,000 to nearly $96,000, a move that saw it positively decouple from traditional equities and flip positive year-to-date.
Amid Bitcoin’s show of strength, market observers have highlighted a notable trend: interest from retail investors remains non-existent. But many maintain that this is not a bad thing, quite the opposite.
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“Bitcoin at $94K, yet – Google searches for ‘Bitcoin’ near long term lows,” Bitwise CEO Hunter Horsley wrote on Monday, citing Google Trends data as he argued that institutions, corporations and nations were driving the recent market rally.
To be sure, Horsley’s conclusions align with a recent Fidelity report that public corporations were driving the demand for the asset. According to the investment bank, 425,000 BTC worth over $40 billion at current prices have been taken off exchanges since November; of this sum, 350,000 BTC worth over $30 billion have gone to public corporations.
Reacting to Horsley’s findings, prominent Bitcoiner and Adamant Research Editor-In-Chief Tuur Demeester contended that Bitcoin still had significant room to the upside.
“We’re gearing up for a very healthy continuation of this bull market,” he said. “This cycle for the first time, the buying is starting not from retail but from (slow moving) institutions. Once retail catches on, bitcoin can cut through other halving precedents like a knife through butter.”
Demeester was not alone in this view. Fundstrat Capital Chief Investment Officer Tom Lee said, “This is [sic] case for surprising upside for Bitcoin.”
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At the same time, CryptoLaw founder John Deaton said that Bitcoin was even a better buy now than it was five years ago despite trading at a higher price now.