Crypto News: Bitcoin Price Moves, Hedge Funds Plan to Allocate Assets to Crypto, and General Motors May Accept Bitcoin
It’s time for another edition of Netcoins weekly news!
In this edition, we cover Bitcoin’s massive 14% pump in price to start the week and discuss why it happened.
We’ll also go over the rising interest in institutional investing that might just reach another level in the next five years. It seems as though retail investors are already on top of that information because new data shows that they are HODLing.
All of that and more is coming at you right here.
Bitcoin Price Rises More Than 14% to Start the Week
Elon Musk is at it again! On Sunday, he responded to a story that features the CEO of a cyber technology consulting company, called Sygnia, who stated that Musk’s tweets are just an attempt to pump and dump Bitcoin.
Musk responded by saying that only 10% of Tesla’s Bitcoin holdings could be sold safely without crashing the market.
But it’s what he went on to say after that in his lengthy tweet that gave both fans of Musk and Bitcoin hope.
Musk wrote that when 50% of the energy used to mine Bitcoin uses clean energy, Tesla will begin accepting BTC in exchange for cars again.
Of course, that’s not the only reason for the 14% pump. Bitcoin and other cryptocurrencies have been losing steam over the last several weeks so it only makes sense to see a bounce back.
Add that to the fact countries in Central America and East Africa are talking about adopting cryptocurrency on a larger scale and there were plenty of reasons for investors to smile early in the week.
Global Hedge Funds Plan to Allocate 7.2% of Assets to Crypto in the Next Five Years
A fund administrator called InterTrust recently conducted a survey featuring 100 global hedge fund managers who were asked to estimate approximately how much of their portfolios will shift towards cryptocurrency assets over the next five years.
The average percentage that might potentially be allocated to crypto according to the survey ended up being 7.2%.
Billionaire investor Paul Tudor Jones recently stated he would like to have 5% of his assets in Bitcoin over the next few years.
It goes without saying that if every hedge fund with deep pockets does this over the next five years, the current prices of Bitcoin, Ethereum, and other top crypto assets will continue to accelerate to levels the market hasn’t seen yet.
Perhaps now is the time to get the best discount investors are going to see over the next 5 to 10 years. It will be interesting to see how things play out.
Small-Time Investors Are Holding up the Price of Bitcoin Even Though Some Are Sounding the Market Bubble Alarm
Recent data suggest that small-time investors are actually holding onto their bitcoin, even though they might have doubled in value. Fresh bitcoin entering the market via mining are not actually being sold by most retail investors who have been purchasing bitcoin during this past year-long bull run. Addresses with less than one BTC now make up 4.95% of the total Bitcoin supply.
It seems as though people are willing to hold Bitcoin around the $40,000 USD mark.
This despite the fact that famous short-seller Michael Burry (the main character featured in the Hollywood movie The Big Short) is back on Twitter warning the world that the biggest market bubble in history is currently being created by all the money printing governments are doing as a result of the coronavirus pandemic.
Burry says the exponential growth of cryptocurrencies, stocks like Tesla, and other assets are all red flags.
An article from Bloomberg earlier this week also suggests that New Zealand, Canada, and Sweden are currently home to the frothiest real estate markets in the world right now.
General Motors May Start Accepting Bitcoin Soon Too
General Motors CEO, Mary Barra, says there is “nothing stopping” her company from accepting Bitcoin and that one of the largest automakers in the world may just start accepting it and see how it goes.
Barra says that overall, the company wants to improve its customer experience in terms of the way people shop for vehicles and the way they hold onto ownership.
Perhaps that last part is a nod to NFTs. It doesn’t sound like Elon Musk is totally giving up on the idea of accepting Bitcoin in the future.
Who knows what General Motors will do next? The point is that mass adoption is inevitable and Barra is making it sound like it’s a step closer for her company.
That’s your Netcoins Weekly News Roundup for this week. Don’t forget to register for a free account and get the best rates on Bitcoin, Ethereum, and a handful of other cryptocurrencies that the market has to offer.
Writer, content marketing at Netcoins.