Which companies are revealing bitcoin investments?

Bert Slagter Schrijver, spreker en analist bij Bitcoin Alpha, Descryptor & Satoshi Radio

3 April 2024

On Easter Monday, a new week, a new month, and a new quarter began. For many market participants, this is an important moment simply because the closing and starting of periods carry significance. This could be due to obligations in the real world or indicators on charts displayed on computer screens. How are things looking in that regard? You'll find out in this Weekly!

This weekly in brief: 

  • Market: The price of bitcoin is around $66,000, marking the third week of the correction that began on March 14. Most data points towards a normal pause in a healthy bull market. 
  • News: Over the next six weeks, American institutional investors will once again have to disclose their investments to regulators. Now that bitcoin investments are also possible for them, there might be some surprises! 
  • Behind the scenes: On April 19, we'll be sponsoring the Bitcoin Halving Party organized by Bitcoin Amsterdam! Will we see you there?

Market update

We've reached an important milestone. Last Sunday marked the end of the week, the month, and the quarter. It might seem odd that a closing price still plays a significant role. In the past, it made sense when the closing price was published in newspapers. Now, there's real-time data, even in financial markets outside of crypto.

However, decisions are still made based on the closing price. Analysts use it in algorithms and indicators. It's used for settlement and determining the underlying value of a fund. It serves as a benchmark for evaluating the performance of an asset manager. And investors base decisions on it, such as portfolio rebalancing or buy/sell decisions.

For gold, the monthly close seems to be the definitive confirmation of breaking out of a consolidation phase lasting more than ten years. The previous gold bull market ran from 2001 to 2011, with a price increase of 650% from $255 to $1920. The price of around $2000 has been a ceiling since then, with several failed attempts to break out in the past three years. Now, it seems to be finally happening.

Is gold's breakout a harbinger of what awaits bitcoin? It's quite possible; physical and digital gold share various characteristics. Both are scarce and cannot be created out of thin air. They are not tied to a country or jurisdiction. They are not a claim on someone else and exist independently. In case of need, they can be stored without counterparty risk.

Gold and bitcoin could have tailwinds for the same reasons. Government currencies losing purchasing power. Financial repression, where inflation remains high and interest rates are kept low. Tensions in the financial system or geopolitics, where players want less counterparty risk.

However, there are significant differences. Gold has existed for thousands of years and has a market value ten times larger. Bitcoin has a built-in transport system and can be sent across the world within minutes, 24/7. It's also much easier to divide. Not to mention the verification of authenticity. With bitcoin, this happens automatically every ten minutes, while with gold, it's an expensive and time-consuming process.

Bitcoin combines two worlds. The world of scarce 'real assets' protects your portfolio against inflation in the long term and also serves as a great source of diversification. And the world of technology is rapidly improving — with exponential growth — and being adopted.

This explains why bitcoin sometimes closely follows gold and other times resembles a technology stock. And sometimes, it charts its course. Will gold's breakout pull bitcoin along? We're curious!

01 XAUUSD 2024 04 03 09 36 16

Did bitcoin also have such a great monthly close? In a way, yes. At $71,300, it's the highest monthly close ever, and it's above the all-time high of the 2021 bull market at $69,000. But why did the price drop this week? Shouldn't a closing price be directional?

A monthly close holds significance in the timeline of months. You could say that anything that happens within a month is just noise. Therefore, we can conclude that while bitcoin is in a healthy bull market, we also need to accept that we're currently in a correction that needs some time.

This correction has been going on for almost three weeks now. There might be a symmetrical triangle forming on the chart. That's a consolidation pattern characteristic of a period when investors are digesting a recent price increase (or decrease), and it's a precursor to the trend continuing. How long this correction will last and how deep it will go, we don't know. But most of the data we have points towards a normal pause in a healthy bull market.

02 BTCUSD 2024 04 03 09 41 37

News Overview

Several analysts find the next six weeks a bit exciting. Why? During this period, they will find out if there are major, well-known players who have purchased American bitcoin ETFs in the first quarter.

Here's how it works: An institutional investor with more than $100 million in assets under management must disclose their investments every quarter with a so-called 13F form to regulators. Now that bitcoin investments are also possible for them, there might be some surprises.

It's expected that the most interesting names will wait until late in the notification period. The idea is that these investors keep their cards close to their chest for as long as possible. Because if you're a name that's causing a stir, you want to have fully built your position before this happens, the idea goes.

Through potentially controversial investors, we end up with someone we know is remarkable: BlackRock CEO Larry Fink.

"I am incredibly positive about the long-term viability of bitcoin," Fink said this week on the American news channel FOX. His enthusiasm is fueled by the performance of IBIT, the bitcoin fund of the world's largest asset manager. "This is the fastest-growing ETF in the history of ETFs."

Fink casually mentions that consumers play a significant role in the growth of the assets managed by his fund. "I am pleasantly surprised to see such a high demand among consumers. I thought our fund would do well, but not this well."

A week earlier, Fink told the same news channel why he believes in the resilience of bitcoin. "I think bitcoin has many applications and opportunities. For people who are afraid of their government. For people living under high inflation. And you can say that bitcoin potentially is great for people who want to preserve their wealth over a long time."

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Other news:

  • Trading in crypto funds will start in London at the end of May. According to the London Stock Exchange, this will initially involve bitcoin and ether funds. Applications for listings can be submitted from April 8, and trading will start on May 28.
  • Investors have put more than $270 million into BlackRock's new Ethereum fund. In the first week, BUIDL managed to raise $160 million. A BUIDL token is worth $1 and is backed by government bonds and other cash equivalents.
  • Regulator SEC wants to impose a $2 billion fine on Ripple. Ripple CEO Brad Garlinghouse calls the fine outrageous and again claims that the regulator is abusing its position of power. Ripple will respond to the SEC's plans this month.


Bitcoin accelerates energy transition | Pioneering with Bert de Groot (Dutch spoken)

Bitcoin boils the oceans. Or is it different? In a new episode of Pioneers, Danny Oosterveer talks with bitcoin mining expert and entrepreneur Bert de Groot. We discuss the impact of bitcoin mining on the climate and how mining can actually accelerate the energy transition.

BNR Cryptocast

The Bitcoin Halving: here's everything you need to know

In a few weeks, the time will come: the subsidy bitcoinminers receive for the work they do will go up in one fell swoop divided by two. We're talking, of course, about halving. What exactly is its effect on bitcoin? And does the halving say anything about the part of the market cycle that is still in the future? At the Cryptocast, analyst Rational Root is our guest. Together with host Herbert Blankesteijn and co-host Bert Slagter, he discusses the key features of this quadrennial bitcoin moment.

Behind the scenes

On April 19, we'll be present as sponsors at the Bitcoin Halving Party, organized by Bitcoin Amsterdam! We look forward to engaging with the community and toasting to the halving moment together. There are still a limited number of tickets available via this link. We hope to see you there!

Btc halving party
Bert Slagter Schrijver, spreker en analist bij Bitcoin Alpha, Descryptor & Satoshi Radio

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