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Investment Firm Founder Has An Important Message For Bitcoin Holders

SkyBridge Capital founder Anthony Scaramucci recently shared positive views on the flagship cryptocurrency, Bitcoin, which could provide some comfort to BTC holders as the bear market lingers. 

Scaramucci Says HODL Bitcoin

According to a report by Business Insider, the investment firm founder advised Bitcoin holders not to sell their BTC as they already made it through the winter. Interestingly, he mentioned that the worst of the bear market is over. Despite this being a bold assertion, there is evidence to suggest that he might be right.

There is the likelihood that Bitcoin has bottomed as the co-founder of Delphi Digital, Kevin Kelly once noted. Following past trends, BTC usually bottoms 18 months before the Bitcoin Halving (with the next coming in April 2024). As such, the worst part of this current market cycle might truly be over.

Scaramucci made this known while speaking at the Messari Mainnet conference in New York. He stated that he was still bullish on Bitcoin despite the cryptocurrency trading far below the highs it reached in 2021. Bitcoin peaked at $68,789 in November 2021 but has since declined by about 61%.

Meanwhile, he has singled out Wall Street’s adoption of BTC as one of the factors that will drive the cryptocurrency’s mainstream adoption. Wall Street giants, like the biggest asset manager, BlackRock, have applied to offer a Spot Bitcoin ETF, and he believes that once these firms have that in their “arsenal,” the Bitcoin market is going to widen as it is expected that institutional investors will be looking to invest in it.

Scaramucci also likened the potential growth of BTC to the Internet boom, as he stated that the younger generation would be “mainstreaming Bitcoin” the same way his generation mainstreamed the Internet (most likely about when there was massive growth in Internet adoption). 

Factors That Could Affect BTC’s Growth

Despite his optimism about Bitcoin’s future, Scaramucci noted certain macro factors that could hamper Bitcoin’s growth. These factors include the higher interest rates, negative sentiment around crypto, and the SEC Chief Gary Gensler with Gensler recently stating that there are so many “hucksters” and “fraudsters” in the crypto space.

However, his opinion on the higher interest rates seems to contrast with that of Crypto analyst Nicholas Merten, who stated that the Fed isn’t doing enough (regarding the interest rate hike) to keep inflation down. According to him, re-inflation is on the rise, and this could be one of the factors that could affect Bitcoin’s price going forward.

Bitcoin price chart from Tradingview.com (Anthony Scaramucci BTC)

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Bloomberg Analyst Lauds Bitcoin Energy Shift Amid Rising Hashrate

The Bitcoin mining industry has risen steadily in the past few years thanks to the widespread adoption and increasing interest in the Bitcoin blockchain. This growth has led to a vast increase in Bitcoin’s hash rate, causing concerns regarding the carbon footprint left behind by mining activities.

A recent Bloomberg study has shown, however, that the carbon footprint left behind by the Bitcoin blockchain has stalled in recent years. 

Bitcoin Unlikely To Burn The Oceans

It’s no news that Bitcoin mining is now a big industry on its own, with some mining firms even contributing to the economy and grid of their locations. Major BTC mining companies have also turned years of profits, which have attracted many investors, including large investment firms. 

The issue of climate change and rising temperature have been the focus of many activists for years, with many accusing the energy-intensive activities of BTC mining of contributing negatively. As a result, regulatory agencies have been more insistent that mining corporations investigate safer and cleaner alternatives to fossil fuels for their energy needs. 

To this end, Jamie Coutts, an analyst for Bloomberg, revealed that the percentage of Bitcoin transactions that use sustainable energy has increased steadily since 2021 and is now over 50%. 

This rise was particularly kickstarted by China’s ban on Bitcoin Mining in 2021 and Kazakhstan’s cap on the energy used by domestic crypto miners. Since then, the overall hash rate has increased by 286%, yet carbon dioxide emissions have decreased from 600 grams of CO2 per KWh to 296.5 grams of CO2 per KWh.

Bitcoin price chart from Tradingview.com (BTC mining)

What Does This Mean For The BTC Ecosystem?

Bitcoin mining’s energy requirements take up around 50% of a miner’s operational cost. Cheaper clean energy is a way to offset these costs while simultaneously reducing the industry’s emissions or carbon intensity. 

The Cambridge Centre for Alternative Finance (CCAF) also recently lowered its Bitcoin electricity consumption estimates by 25% from 105.3 TWh to 95.5 TWh, showing the transition is having better effects.

A transition into cleaner energy methods speaks well for BTC and the crypto industry as a whole, considering the blockchain has been heavily criticized in the past by environmentalists. This leaves room for companies to accept Bitcoin as a payment method without facing any kind of backlash. 

Elon Musk’s Tesla, for instance, pledged in 2021 to resume allowing BTC payment for its cars when there’s a confirmation of 50% clean energy usage by miners.

Additionally, Climate technology venture investor and activist Daniel Batten argues that this metric is more than 50%.

On-chain analyst Willy Woo also estimates that the carbon footprint of the Bitcoin mining sector can be turned negative by an investment of around $450 million.

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Crypto Analyst Predicts More Trouble Ahead For Bitcoin Price, Here’s Why

Crypto analyst Nicholas Merten has given an insight into the future trajectory of the Bitcoin price, suggesting that the flagship cryptocurrency may experience turbulent times ahead. 

The Calm Before The Storm For Bitcoin

In a recent episode of his YouTube channel DataDash, Merton mentioned that Bitcoin, other altcoins, and the broader asset market were on the brink of a major move as several macro factors were coming together. He further went ahead to discuss how these different “dominos”  could “potentially cause a lot of pain in the economy.”

The first macro factor he mentioned was equities. According to him, the direction of equities and the broader assets are going to have a “direct impact” on Bitcoin. He showed a direct relation between the equity market and the crypto market as coins began to pick up at the beginning of the year, right around when the former was on a high.

However, he pointed out that the equity market has been relatively quiet as the narratives that are meant to push it higher haven’t done the job. As such, he believes that if stocks like Apple’s, Microsoft’s, and Fang’s (basically the stocks of major tech companies) don’t start picking up, then there could be a “really big problem” (most likely in reference to the crypto market).

Re-Inflation On The Rise

Another factor that he emphasized was the inflation data. Merton seemed to suggest that the Fed wasn’t doing enough to curb inflation and bring it down to the target of 2%. According to him, the Fed could have taken a more stringent approach by raising the rates by 75 basis points or even 100. 

The inflation rate is known to have a significant impact on the crypto market, as a higher rate means that investors may have little or nothing to spend in the crypto market. Merton noted that it is evident that the Fed isn’t doing enough as the prices of several goods and services (including energy) seem to be re-inflating. 

He made a comparison to the ‘70s when inflation was also at an all-time high and stated that if this time is nearly similar to then or if there is a trend, then it could be a “huge problem.”

Some may argue that the ‘70s were extreme times, especially with the oil embargo, which makes it different from this period. However, Merton noted that there isn’t much difference as we have the situation with BRICS, which suggests that the world is de-globalizing and nations are less trusting of one another. 

This would invariably affect trade deals and foreign relations, something which Merton believes would have “inflationary pressures,” and the Fed is well aware of this. He stated that the major reason we are experiencing this re-inflation is because supply and demand aren’t balanced. 

According to him, there is excess money in the system due to the “excess printing of money” which people got rich off and the stimulus checks during the COVID era. As such, there is so much purchasing power without there being enough supply to meet these demands.

Bitcoin price chart from Tradingview.com (Crypto analyst)

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Bearish Signal? Bitcoin Whale Wakes Up From 6-Year Slumber And Transfers $56 Million

Movement of dormant Bitcoin addresses has been sporadic this year, with most causing a stir and rising interest amongst the Bitcoin community. In the latest record of whale transactions this year, on-chain data has shown that a set of dormant Bitcoin from 2017 has moved for the first time in six years. 

Peckshield, a blockchain security and data analytics firm, revealed in a tweet that the previously inactive address, which held 2,100 BTC has just become active, with its assets now transferred to a different address. 

Whale Wakes Up From Slumber, Moves $56 Million

According to data from BitInfoCharts, this Bitcoin address initially had its first Bitcoin transaction of 2099.99 BTC on October 10, 2019. At the time, Bitcoin was trading at $5,618, putting the total value of the transaction at $11.79 million. Bitcoin has grown substantially since then, with a unit now going for $27,140 at the time of writing.

The cumulative balance in the wallet address has experienced a significant increase to $56.3 million at the point of transfer, indicating a substantial profit of $44.5 million. However, on-chain data shows that the worth of these holdings reached $121 million during the crypto market bull run in 2021. 

Bearish Signal?

The whale transfer in question appears to have added an air of mystery and excitement to an otherwise dull week of Bitcoin. When a large amount of BTC suddenly moves, it can spark interest from other traders, causing temporary price fluctuations, especially when they are sold off. 

Bitcoin price chart from Tradingview.com (BTC whale)

It is currently unclear the motive behind the transfer of these coins, as the owner could be gearing up for a selloff or transfer into a safer wallet. This move could be bearish, though, if they decided to sell all of their holdings. 

It could introduce a fair amount of selling pressure on Bitcoin and cause the price to drop, at least temporarily. However, on-chain data shows that the 2,100 BTC are still held in a private address, “1LGnp”, showing they are probably still in self-custody. 

Bitcoin Worth $24.88M Resurfaces from 2012 Wallets

In another series of transactions this week, a set of dormant Bitcoin from 2012 has moved for the first time in 11 years. The Bitcoin cache, which total $24.88 million in today’s BTC price, was moved in five transactions, making it unclear if they belonged to one person. However, findings from on-chain data show a higher chance of them belonging to one entity due to their acquisition dates. 

Similarly, one of the earliest Bitcoin wallets holding 1,005 BTC was awakened last month. These cryptocurrencies were acquired for less than $1 each in 2010, during the first year of Bitcoin’s creation.

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Jordan Peterson Sparks Debate On How Bitcoin Can Solve Major Banking Problem

The flagship cryptocurrency, Bitcoin, was created with the goal of disrupting the traditional financial system. In support of this, Best-selling Author and Clinical Psychologist Jordan Peterson has suggested that customers should abandon the banking system and probably adopt Bitcoin.

Jordan Peterson Says Bitcoin Over Banks 

Peterson was making this suggestion in response to a news report that Macquarie Bank, Australia’s fifth largest bank, was planning to transition to a digital-only banking system by November 2024. In line with this, the bank will begin phasing out cash, cheque, and phone payment services as part of its offerings. 

The psychologist quoted the report and stated, “Maybe it’s time to scrap Banks,” and further quizzed, “Could Bitcoin fix this?” 

For one, Macquarie Bank’s decision has been widely criticized as it potentially excludes certain customer groups. Furthermore, this move also highlights one of the problems that cryptocurrencies like Bitcoin aim to solve by giving customers more control over their money.

It is believed that these financial institutions shouldn’t be able to have so much control over people’s finances and decide how they spend their money as these banks could easily implement policies that do not favor or cause difficulties to certain customer groups. 

Additionally, Macquarie, in a statement, described digital transactions as being a “safer, quicker, and more convenient way to bank.” However, crypto advocates beg to differ as, in response to Peterson’s tweet, some responded that networks like the Bitcoin Lightning Network, XRP Ledger, and Bitcoin Cash are a better alternative than the banks’ digital systems. 

Lightning Network To The Rescue

Many, including Republican presidential candidate Aaron Day, seem to be against the idea of Bitcoin replacing banks. In response to Peterson’s tweet, Day stated that the traditional banking system could do between 50,000 and 100,000 transactions per second (TPS), unlike Bitcoin, which has a TPS of seven. He also elaborated that the CBDC pilot in the US can do 1.7 million TPS.

Following this, crypto supporters quickly responded that the Bitcoin Lightning Network helps to solve this problem as it boasts a TPS of up to 1 million, making it faster than the traditional banking system, which Day argues for. 

The network is able to provide a quicker alternative while enjoying the security that the Bitcoin blockchain provides. Blockchain technology (which cryptocurrencies run on) is said to be more secure and transparent than the traditional banking system.

Meanwhile, many in the Bitcoin community seemed to be happy about the idea of Jordan Peterson mentioning the foremost cryptocurrency on his platform, as that could suggest that Bitcoin is about to gain a major proponent. The Canadian psychologist boasts a huge follower base with 4.6 million followers on his X (formerly Twitter) platform.

Bitcoin price chart from Tradingview.com (Jordan Peterson banking)

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The Real Reason Behind That Bitcoin Transaction With A $500,000 Fee Has Been Revealed

In a surprising twist of events, Paxos has come forward to take the blame for the $500,000 Bitcoin fee payment after PayPal was accused of being the party responsible for the exorbitant fee transfer. 

Paxos Comes Forward As Guilty Party

Paxos, a New York-based blockchain infrastructure company and the issuer of PayPal USD (PYUSD) and Pax Dollar (USDP), recently admitted responsibility for a substantial $510,000 Bitcoin fee payment, the highest fee ever paid in US dollars for a single Bitcoin transaction. 

The story began when several blockchain sleuths noticed the abnormally high Bitcoin network transaction fee of 19.89 BTC attached to a relatively small Bitcoin transfer of 0.074 BTC. Usually, BTC network fees range from $1-$5 and sometimes $50 when network activities are high, so the fee instantly piqued interest. 

An analysis by an X (formerly Twitter) user, Mononautical claimed that the entity behind the overly paid Bitcoin fee transaction was PayPal because the address behind the transaction was similar to one tagged as PayPal on OXT, a mobile block explorer for Bitcoin. In light of these rumors, Paxos has come forward to debunk the statement, clarifying that it was indeed an error on their part.

Paxos has stated that the substantial BTC fee was caused by a bug error on the Bitcoin transfer. However, the blockchain infrastructure company has begun making plans to reclaim the lost funds from BTC miners involved in the transfer. 

“Paxos overpaid the BTC network fee on Sept. 10, 2023. This only impacted Paxos’ corporate operations. Paxos clients and end users have not been affected and all customer funds are safe,” the blockchain service provider said.

Bitcoin price chart from Tradingview.com

Bitcoin Miners Contemplate Refund

Presently, Bitcoin miners are contemplating refunding the significant Bitcoin network fee paid by Paxos for a 0.074 BTC transfer. The mining company involved in the transfer was Stakefish, a leading validator for proof of stake blockchains. 

The CEO and Founder of Stakefish, Chun Wang announced in a post on X that the individual behind the overly paid BTC fee transaction should come forward and reclaim their funds within three days. 

Following the announcement, a claim was made after three days, however, Wang has been uncertain about releasing the Bitcoin fee funds. He stated that he felt contrite about giving consent to the reimbursement and asked if he should split the funds between miners and Paxos. 

A few members of the crypto community had suggested distributing the funds to miners, while others proposed splitting the funds equally between Paxos and miners. All things considered, the loss of the Bitcoin fee funds has been a huge blow to Paxos, raising concerns about the firm’s security. 

The crypto infrastructure provider has also been on the United States Securities and Exchange Commission’s (SEC) radar, for allegedly infringing several investor protection laws in issuing the BUSD stablecoin. Paxos also faces significant regulatory challenges in several regions including Canada and New York.

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Why This Crypto Exchange Founder Believes Bitcoin Can Still Rise 150% From Here

The price of Bitcoin has fluctuated over the past month, but BitMEX co-founder Arthur Hayes is the latest crypto expert to make a bullish forecast for the asset. According to the former CEO of the cryptocurrency exchange BitMEX, Bitcoin could reach $70,000, and the only reason the asset is not yet at this price is because investors are fixated on the Fed’s nominal rate.

Bitcoin Can Still Rise 150%

Various predictions have come in regarding Bitcoin, with some being more bullish than others. As for Hayes, he made his case regarding BTC in his Crypto Trader Digest blog post in light of various actions by the US Federal Reserve to curb inflation. 

Since March 2022, the Fed has raised interest rates multiple times, causing many investors like Hayes to reconsider their predictions regarding the outlook of Bitcoin.

In the blog post, Hayes shared several metrics relating to the US treasury yield and GDP growth. Hayes began adjusting his forecasts by disputing the widely held belief that BTC’s value is negatively correlated with rising interest rates. 

A new outlook shows that the government’s spending rates and the current growth of GDP have driven down the actual treasury yield on 5% government bonds closer to 4%, making risky assets like BTC and stocks still attractive. 

Hayes believes the Fed will be able to continue down this path of raising rates, and investors’ search for positive real yields in response to this has translated into a bullish market for Bitcoin which began in March 2023. 

However, although Bitcoin is up by close to 29% since then, most of the market is still yet to catch on as everyone is focused on the nominal Fed rate and not the real rate.

“The reason why we aren’t at $70,000 is that everyone is focused on the nominal Fed rate, and not on the real rate when compared to the U.S.’s eye-poppingly high nominal GDP growth.”

Bitcoin price chart from Tradingview.com

BTC Price To $70,000?

While speaking at the Korea Blockchain Week, Hayes mentioned that the next Bitcoin bull market started on March 10, the day the Federal Deposit Insurance Corporation (FDIC) took over Silicon Valley Bank (SVB). 

Hayes has actually made similar predictions regarding Bitcoin. Back in March 2020, the pundit made a prediction Bitcoin could rise from $8,000 and reach $20,000 by the end of the year. BTC’s price would later close the year 2020 at around $27,000. 

The BitMEX co-founder has previously expressed his discomfort on Spot Bitcoin ETF, from investment companies like BlackRock, calling them “crypto gatekeepers” who are only looking to balance their deposit base. However, Hayes believes a catchup by the market would Bitcoin survive more interest rate raise from Fed to skyrocket more than 150% from its current level by early 2024. 

At the time of writing, Bitcoin is trading at $26,320 and is up by 2.27% in a seven-day timeframe.

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Bitcoin Wallet Activity Touches 5-Month High, Will BTC Price Follow?

Despite the less-than-impressive performance over the last few months, Bitcoin investors are still digging their heels deeper into the digital asset. This is evidenced by the continuous rise in wallet activity that has been recorded during this time.

Bitcoin Wallet Activity Hits Highest In 5 Months

In a Tuesday post, on-chain data aggregator Santiment revealed that there has been a significant uptick in Bitcoin wallet activity despite the BTC price downtrend. Apparently, while the market had fluctuated heavily due to regulatory uncertainties, Bitcoin investors held their own, especially in terms of new wallet address activity.

The Santiment reports show fluctuations in this metric over the months. However, the one consistent thing was the tendency to jump back up even after dipping significantly. In September alone, the metric has moved from a low of around 860,000 to over 1.1 million unique daily Bitcoin addresses active.

Bitcoin addresses

Interestingly, this figure is the highest this metric has been since April, proving that the BTC price downtrend has not served as a deterrent for Bitcoin investors. Rather, it looks as if investors are using the current low prices as a way to increase their footprint.

The uptick can also be explained by the euphoria triggered by asset manager Franklin Templeton filing for a Spot Bitcoin ETF. While the hype around the filing was short-lived, it triggered a brief uptick in the price of the digital asset, and likely aided the rising wallet activity rate as investors rushed to take advantage of the growth.

Will BTC Price Follow Wallet Activity?

Even though wallet activity is up, the BTC price is still straining below $26,000. This could suggest that this metric does not really have much bearing on the price of Bitcoin. Rather, it just points to investors not slowing down usage of the network despite low prices.

Bitcoin BTC price chart from Tradingview.com (Wallets)

Presently, investors are still eagerly awaiting a decision on the numerous Spot BTC ETFs that have been filed by fund managers. The outcome of these filings, whether rejected or accepted, will likely be the defining factor for the Bitcoin price going forward.

For now, there are no big moves to be expected for the digital asset, especially given the fact that it is still ranging below its 50-day and 100-day moving averages. Mounting resistance between $26,000-$27,000 suggests that Bitcoin might continue to trade sideways for the better part of September.

At the time of writing, Bitcoin is treacherously holding above $26,000 with meager gains of 0.64% in the last day.

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Crypto Analyst Predicts Where Bitcoin Price Will Be By End Of Year

A crypto analyst has presented their forecast for where they believe the Bitcoin price will be by the end of 2023. However, the end-of-year (EOY) price prediction is not the only interesting thing that the analyst talks about, with short-term expectations also included.

Hoops To Jump Through For Bitcoin Price

Pseudonymous crypto analyst Titan of Crypto took to X (formerly Twitter) to share their latest prediction for the Bitcoin price. This analysis uses the Ichimoku point of view to analyze a Tenkan Cajun (TK) death cross that appeared on the Bitcoin price chart.

The importance of this TK death cross is what happened to the digital asset’s price the previous times it has appeared. According to Titan of Crypto, this exact death cross has appeared twice in the past two years, and each time, the outcome has been bearish for the Bitcoin price.

Bitcoin price EOY

As the analyst points out, Bitcoin had dropped an average of 20% when the TK death cross appeared both in June 2021 and January 2022, which does not bode well for the price right now. So another occurrence could see the Bitcoin price fall around 20% from its already low levels.

The analyst also points to the packed week in terms of economic announcements such as the CPI and PPI, among others, which could have an adverse effect on the crypto market depending on their outcome. Such a drop as previously recorded could easily see the price drop to $20,300 the analyst points out.

Bitcoin price chart from Tradingview.com

BTC Will End The Year On A Good Note

Despite the incredibly bearish outlook that has formed for the Bitcoin price, especially in the short term, it is not all gloomy, according to Titan of Crypto’s analysis. For one, the analyst does not expect the price of the digital asset to fall any lower than its already established bottom back in 2022. This means that even though the analyst sees BTC returning toward $20,000, it won’t make a new bottom.

Furthermore, the analyst also sees the cryptocurrency finishing out 2023 on a high note. In the same analysis, he points out that he expects Bitcoin to cross $30,000 by year’s end. “Overall I believe that Bitcoin is going to go up and gravitate/pass the $32k level by EOY,” the tweet reads.

Going by this forecast, even if Bitcoin does fall to $20,000, the digital asset could see a more than 30% rise before the year is out. “But this scenario hasn’t played out yet and a lot of support needs to break before hoping for such a low price for #BTC,” the analyst explains in a follow-up tweet.

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Remember That Guy That Lost A Flashdrive With 8,000 BTC? Here’s What He’s Up To Now

James Howells, a Welsh Bitcoin investor and the man who inadvertently lost $557 million worth of BTC in a flash drive is seeking to file a lawsuit against Newport City Council (NCC) in the United Kingdom for refusing his requests to excavate the area he presumed he misplaced the hard drive. 

Howells Threatens Legal Action Against NCC

After 10 years of searching for the elusive flash drive carrying a fortune of 8,000 BTC, Howells has taken an aggressive approach to his hunt and threatened the NCC with proper legal action that may see the council firmly bankrupt if the court rules in favor of Howells.

The NCC is a single-tier unitary authority that oversees the administration of all areas in Newport, one of the principal areas in Wales. Howells has been in contact with the council over the years, requesting permission to undergo a landfill excavation in the area that supposedly harbors the flash drive. 

Howells claims that he has raised sufficient funds to propel the excavation work and only needed the council to give the go-ahead. However, the NCC has been adamant about its rejection despite Howells’ funding claims. 

The council has consistently declined Howells’ requests for a landfill excavation, with reasons of environmental concerns and prioritizing working officers’ time who ensure the safety and well-being of Newport residents. 

“In the current environment, we cannot justify wasting officers’ valuable time providing services to the residents of Newport,” a council spokesperson stated. 

In response to the multiple rejections, Howells has stated that he would sue the council for damages worth $557 million. He has submitted a letter to the council, demanding a concession to perform a landfill excavation on Monday, September 18. 

Following a failure to adhere to the ultimatum, Howells has requested a judicial review to evaluate the legitimacy of the council’s judgment to reject his Bitcoin recovery efforts.

Bitcoin price chart from Tradingview.com (8,000 BTC)

NCC Can Keep 10% Of Recovered BTC

In an attempt to influence the decision of the NCC regarding the landfill excavation work, Howells has promised to deliver 10% of the total Bitcoin funds recovered. He has stated that he will use the funds to transform Newport into a “crypto-mecha.” 

The Welsh crypto investor also offered to provide 50 Euros to all Newport residents and facilitate the implementation of crypto terminals in local shops. 

Howells has been vigorously trying to recover his 8,000 BTC since 2013. With Bitcoin’s price over 1,000 times the value it was in 2013, the Welsh investor is desperate to locate the flash drive containing his potential fortune. 

He has expressed his frustration and determination with the NCC’s rejections, stating “I’ve tried everything possible for 10 years; they didn’t want to play ball, so now we have to take the legal route.”

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Here’s What Bitcoin Price The Bull Market Will Start According To This Analyst

The Bitcoin price has been experiencing a series of price fluctuations for two years now. The cryptocurrency has been on a bullish threshold multiple times but has failed to hold a bullish momentum for long. 

Nevertheless, a Bloomberg analyst has predicted an unfeigned bull run for BTC, but the potential uptrend comes with certain factors and conditions.

Investors Prepare For Possible Bitcoin Bull Run

The slow growth of Bitcoin price has left investors and crypto enthusiasts hoping for a potential bull run since its crash in 2022, which saw the cryptocurrency dropping from $46,000 to below $20,000.

The morale of the crypto space has been uplifted, however, following a forecast made by Senior Macro Strategist at Bloomberg Intelligence, Mike McGlone, who proposes a potential bull run for Bitcoin.

In an X (formerly Twitter) post, the senior analyst implies that if the Bitcoin price rises above the $30,000 mark, investors should expect a significant bull run similar to the uptrend recorded in 2020 when Bitcoin was at its all-time high.

McGlone explained that Bitcoin’s $30,000 is analogous to its $12,000 price mark in 2020, just before its surge. To put this in perspective, in 2020, while Bitcoin price was as low as $12,000, the cryptocurrency recorded one of the highest surges in its history, and McGlone has equated that price jump to the bullish momentum he foresees for Bitcoin if it crosses the $30,000 price threshold.

“Bitcoin $30,000 May Be New $12,000, With Fed-Tightening Overhang,” McGlone said in the X post.

He also added that Bitcoin’s price may see substantial growth if regulatory burdens are addressed and spot Bitcoin ETFs are eventually approved.  

“The inevitable approval of Bitcoin ETFs in the US is moving closer, but the elephant in the room for all risk assets remains. The Fed is still tightening despite the tilt toward economic contraction,” the analyst said.

Factors Hindering Bullish Momentum For The Bitcoin Price

As the crypto space keeps an eye out for more confirmation of a favorable price reversal for Bitcoin, several factors could impede Bitcoin’s expected growth trajectory.

Industry experts have highlighted that the increased adoption of the Bitcoin ETF following Grayscale’s victory against the SEC could have a significant impact on the price of Bitcoin. However, the United States Securities and Exchange Commission (SEC) previously rejected applications for spot Bitcoin ETFs by prominent financial service firms and crypto exchanges in the industry. 

The SEC has also delayed applications for Bitcoin ETF from renowned firms like Blackrock, and WisdomTree even after Judges from the District of Columbia Court of Appeals in the US were not in favor of the SEC’s rejection of Grayscale’s Bitcoin ETF. 

Furthermore, the SEC has also been aggressively suing many crypto exchanges, including Binance and Coinbase. This lack of a proper regulatory framework has affected the prices of cryptocurrencies, including Bitcoin, so crypto investors are hesitant to invest in an exchange facing multiple lawsuits and potential legal repercussions.

Bitcoin’s transaction volume has also taken a hit, plunging to 3-year lows. The transaction volume declined by a staggering 90% previously cutting short a potential rally and positioning the cryptocurrency at a bearish mark. Additionally, Bitcoin mining which was once a lucrative crypto venture has also seen a significant decline for participants.

However, while the factors hindering a Bitcoin price growth spurt are considerable, investors’ hopes still remain strong as they prepare for a price spike.

Bitcoin price chart from Tradingview.com (Bloomberg analyst bitcoin bull run)

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Exodus Of 30,000 BTC To Cold Wallets Spells Good News For Bitcoin Price

A massive 30,000 BTC was transferred into unknown wallets over the past week, leading many investors to wonder about the current outlook concerning Bitcoin. When big money moves into cold storage, it reduces selling pressure because it often indicates that whales and institutional investors are expecting the price to go up and opting for self-custody.

Massive Exodus Of BTC To Cold Storage

Data from CoinGlass shows that almost 30,000 BTC have been moved off exchanges in the past week. With Bitcoin currently trading around $26,000, this equates to over $780 million moved into cold storage. 

Most of this movement has come from Binance, with an 11,457 BTC net change in its reserves. Coinbase, Bitfinex, and Gemini also witnessed a net exodus of 4,455 BTC, 2,808 BTC, and 6,004 BTC, respectively. In contrast to this, the crypto exchange OKX had 2,149 BTC moved into its exchange.

On-chain whale movement alerts from Whale Alerts this week have also shown various instances of BTC movement off crypto exchanges into unknown wallets:

Unknown wallets typically mean movement into cold storage, which refers to any method of storing crypto offline. Investors use cold wallets to hold Bitcoin long-term as a way to accumulate their assets. 

For many long-term holders, this is a safer option than keeping large amounts of crypto on an exchange which could be at higher risk of hacks or scams.

Bitcoin price chart from Tradingview.com

How Is This Bullish For The Price Of Bitcoin?

Bitcoin into cold storage points to a bullish outlook from serious investors. It reduces selling pressure since the amount of BTC available for sale on exchanges has become smaller. According to the economic principles of supply and demand, the lower supply is poised to lead to higher prices. 

While it’s not entirely clear what is causing this transition, the timing of this movement to cold storage is also notable. The SEC’s decision on spot Bitcoin ETF applications is imminent, and many believe that approval would lead to a spike in the price of Bitcoin. However, the regulator can still delay the applications for up to 240 days. 

The price of Bitcoin has gone through a considerable dip in the past month as the market reacted to various news. At the time of writing, the cryptocurrency is trading at $26,000 and is down by 11.83% in the past month but up by 0.42% in a 7-day timeframe. This would suggest that the movement into cold storage has not had a significant effect, as the price of Bitcoin is still struggling to recover.

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Rise In Bitcoin Outflows Suggests Institutional Investors May Be Losing Faith In The Asset

This year has been marked by significant volatility across the crypto market, including for Bitcoin, which has seen both gains and losses over the course of the year. Just a month ago in the middle of July, Bitcoin crossed over $30,000 and many investors saw this as the start of another bull run. 

However, things seem to have taken a turn, as the price of Bitcoin has plateaued since then. The asset is currently struggling to find a push in price, and it would seem this sentiment has flowed into digital asset funds. According to the weekly report published by digital asset manager CoinShares, Bitcoin outflows from institutional accounts have resumed in the past week.

Outflows From Digital Asset Investment Products

Outflows from digital asset investment products have spiked in recent weeks to register a three-week run of outflows. This would indicate that institutional investors might be avoiding volatile cryptos. This comes two weeks after a brief period of inflows, where Ripple’s partial victory in court and recent US inflation data led to inflows in digital asset products. 

However, data shows that outflows resumed last week, and it appears that the euphoria that followed Ripple’s partial triumph against the SEC has dissipated. Digital asset investment products saw $55 million in outflows last week, with Bitcoin leading the charge with outflows of $42 million.

Other cryptocurrencies like Ethereum registered $9 million outflows, while Polygon, Litecoin, and Polkadot saw outflows of $0.9 million, $0.6 million, and $0.5 million, respectively. On the other hand, XRP and Cardano saw an increase in their respective inflows of $1.2 million and $0.1 million. 

In terms of region, Canada had the most outflows of $35.9. million, and Germany followed with $11 million.

Bitcoin price chart from Tradingview.com (Institutional investors)

Rise In Bitcoin Outflows

Bitcoin outflows from exchanges suggest big investors may be losing faith in the popular cryptocurrency. One factor that fueled this outflow is speculations going around that the SEC might not actually approve applications for spot Bitcoin ETFs in the US. As a result, total assets under management (AuM) declined by 10% to close the week at $32.3 billion. 

The speculations come as the SEC has delayed making a decision on Spot Bitcoin ETF applications multiple times. Each postponement casts more doubt on whether they will ever approve one and an outright rejection from the SEC will most likely lead to the price of Bitcoin falling to $20,000 and digital asset investment products registering more outflows.

At the time of writing, Bitcoin is trading at $26,053 and is down by 11.09% in a 7-day timeframe.