The crypto bull market is showing remarkable strength. After months of incredible growth, bitcoin is trading in a remarkably tight range — anywhere from $56,000 to $58,000.
It looks to me like big players are building positions. If these new institutional investors hold for the long run — and I expect most of them will — this will be incredibly positive for bitcoin’s price stability and long-term appreciation.
In the past few weeks, a few friends of mine who are executives at large financial corporations have begun buying bitcoin. They’re finally starting to understand what it’s all about. I suspect this is happening all over the finance world.
And CoinDesk just reported that bitcoin miners are increasingly stockpiling their mined coins.
“Miners [now] have a net accumulation of liquid assets as they have enough cash in reserve to run their future operations, having liquidated holdings when the bitcoin price was between $20,000 and $40,000, or most of them are holding in anticipation of a price rally,” Flex Yang, CEO of Hong Kong-based Babel Finance, said in an email.
Looks like we have quite a bullish setup here. I continue to hodl and wait. As I recently wrote, I’d be happy if we just hung around $60,000 for the next six months. But I now suspect we’ll be at new all-time highs soon.
Obviously, this isn’t a bad thing. But I would prefer a more steady climb in prices instead of the parabolic jumps we’ve been having over the last year.
Either way, I strongly believe bitcoin — and likely the broader crypto market — will continue to grow over the long-term. There’s never been a more bullish environment for crypto.
That being said, anything could happen. I don’t recommend trying to time this market. If you do, make it a small part of your overall portfolio. And hold the majority for the long-term.