- The Exponential Age and increased liquidity injections create a favorable environment for buying Bitcoin and other cryptocurrencies, according to Real Vision CEO Raoul Pal.
- The Bitcoin spot ETF race and the Great Accumulation of Bitcoin by institutions contribute to the current market momentum.
Seizing the Opportunity in the Exponential Age
Real Vision CEO Raoul Pal, a former Goldman Sachs executive, highlights the current macroeconomic conditions as an opportune time to invest in Bitcoin (BTC) and other cryptocurrencies. According to Pal, the impending Exponential Age, driven by advancements in artificial intelligence (AI) and innovative technologies, is set to propel the growth of crypto assets and technology stocks. In this era of rapid technological progress, Pal predicts a surge in the value of cryptocurrencies.
Pal further suggests that the Federal Reserve will likely inject more liquidity into the markets to revive the economy after raising interest rates in an attempt to curb inflation. Historically, increased liquidity has resulted in higher cryptocurrency prices. These factors combined create a perfect storm for investors seeking to capitalize on the growth potential of digital assets.
The Great Accumulation of Bitcoin
The market momentum has shifted since BlackRock filed for a Bitcoin spot ETF, triggering a race among financial players. Notably, BlackRock, Invesco, WisdomTree, Bitwise, and Valkyrie have all submitted their filings. This competition to secure a share of Bitcoin’s limited supply has initiated what experts refer to as the Great Accumulation of Bitcoin.
Anthony Pompliano, a well-known figure in the crypto space, draws parallels between this accumulation race and the historic space race. Institutions and individuals are fervently accumulating Bitcoin, recognizing its potential as a scarce and valuable asset. Long-term investors have already amassed a significant portion of the 21 million BTC that will ever exist, resulting in illiquid markets when Wall Street giants attempt to enter.
Market data supports this theory of constrained supply and illiquid assets. A significant percentage of Bitcoin in circulation has remained dormant for over a year, reaching an all-time high of 69%. This illiquidity poses challenges for institutional investors seeking to acquire Bitcoin. The decline in highly liquid BTC supply and the contraction of actively tradable supply further demonstrate the limited availability of Bitcoin.
