According to Bitwise’s head of research Ryan Rasmussen, sovereign wealth funds may be selling gold to buy Bitcoin (BTC). One major signal is that in a survey of 15 major institutions, none had sold their Bitcoin during its dip from $125,000 to $60,000. This shows substantial confidence, especially among institutions. In fact, the report notes that institutions are selling gold for Bitcoin (BTC), as a hedge against currency debasement. Let’s discuss if Bitcoin (BTC) is in for another major rally.
Will Bitcoin (BTC) see another Rally As Institutions Sell Gold For More Of The Cryptocurrency?
Bitcoin (BTC) saw major upswings recently; one in late August and one in early September. The asset briefly reclaimed the $87,000 price level, but failed to breach $90,000. BTC has since faced a retracement to the $83,000 mark. The rallies were fueled by President Trump’s cryptocurrency event at the White House and increased bond buy backs from the US Treasury. However, high inflation led to a hike in interest rates. Higher rates often leads to lower risky investments.
Bitcoin (BTC) may continue on its sideways trajectory over the coming days. The US-Iran conflict seems to have no end in sight and a deal is yet to be finalized. There was hope for a ceasefire after Iran said that it would open the Strait of Hormuz within a week if its demands were met. If the war continues and oil prices remain high, inflation may become a major problem. Bitcoin (BTC) is unlikely to rally under such circumstances.
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Meanwhile, many analysts are bullish on Bitcoin (BTC). Bernstein anticipates BTC to reclaim the $100,000 mark by the end of this year. If BTC hits $100,000 it could trigger another bull run for the larger cryptocurrency market. However, there is also a chance that BTC will not rally, but in fact face a correction as economic worries continue to worsen.