— Kevin Rooke (@kerooke) May 23, 2020
As we can see from the tweet, it’s a huge jump from earlier figures. The average weekly buy in for Q1 2020 is $29.9m, compared with just $3.2m in the same period for 2019.
In response to his tweet, Grayscale CEO Barry Silbert hinted: ‘Just wait until you see Q2.’
just wait until you see Q2…
— Barry Silbert (@barrysilbert) May 23, 2020
Grayscale revealed back in April that the capital inflow in Q1 alone was 83% of the capital raised in the whole of 2019.
What’s more, 88% of all the capital inflows from Q1 were from institutional investors, mainly hedge funds, and in that period, both the Bitcoin and the Ethereum Trust saw record capital inflows.
Savvy Investors Looking To Hedge From Inflation
The crash in March, however severe, was a typical reaction during a rush for liquidity. Even the traditional store of value, gold, took a short term hit, but gold has bounced back, and so has Bitcoin in spectacular fashion.
Analysts have predicted rising institutional demand for Bitcoin after the global economy recovers from the health crisis.
And we have seen several billionaires come out and recommend Bitcoin, as a way to hedge against inevitable inflation that’s in the horizon.
And with legendary macro investors, such as Raoul Pal of Real Vision, repeatedly tweeting about the bullish scenario for Bitcoin. ‘The perfect set up. Bitcoin porn,’ he called it.
This is the one of the best set ups in any asset class I’ve ever witnessed…technical, fundamental, flow of funds and plumbing. All. Now.
Again, to be clear, even if it has 90% odds, doesn’t mean its definitely going to work…I can and will be wrong…often and dramatically.
— Raoul Pal (@RaoulGMI) May 8, 2020
In one thread, Pal said, ‘This is the one of the best set ups [BTC macro chart] in any asset class I’ve ever witnessed…technical, fundamental, flow of funds and plumbing. All. Now.’
Not Everyone Agrees
Although, according the Goldman Sachs official narrative, Bitcoin isn’t a recommendation. The antique told its clients that cryptocurrencies ‘are not an asset class.’
Obviously Grayscale and its institutional investors aren’t listening to the financial passé.
Conclusion
2018 was supposed to be ‘the year of the institution’ but look how wrong the narrative was. It was too early. We were in the capitulation phase, and many who bought in early 2018 fell for the narrative.
Billionaires, highly respected macro traders, and proof from Grayscale’s data are all saying the same thing. Goldman doesn’t agree with them, but why do they think their opinion is trusted anyway?
Well, whatever the narrative (they’re usually wrong), it’s better to watch what institutions do, not listen to what they say, especially antiquated banks who have been comfortable for far too long.
Author: Tommy Limpitlaw
A Bitcoiner since 2017 and a Bitcoin Maximalist since 2018, Tommy is our main writer and editor at Bitcoin Maximalist. Other than researching and writing about Bitcoin, Tommy loves spending time with his family and supporting his beloved Leeds United.
