The Secret Profiteers of the 🔶 Bitcoin Price Drop 🔶!

taketonews

The information on this page is provided by CryptoPR. If you click on the links in the article, CryptoPR may receive a commission – at no cost to you. For questions about the article contact [email protected] or here.

The secret beneficiaries of the low BTC rate

Zack, the Bitcoin price went up 7%. The reason for the good news from the crypto markets was today’s judgment in the legal dispute between the SEC and Grayscale. At the very least, it’s a stage win against US securities regulators at crypto asset manager Grayscale. He had appealed against the rejection of their Bitcoin ETF and was right today.

A Washington appeals court ruled that the Securities and Exchange Commission (SEC) wrongly denied crypto asset manager Grayscale Investments’ application for an exchange-traded fund license. This overturned the SEC’s order, allowing it to reconsider and subsequently reevaluate its application for a Bitcoin exchange-traded ETF.

It’s just a stage win, because of course the SEC can deny the application again. But it has to come up with a stronger argument than was previously the case. In addition, the SEC can appeal against the judgment that has now been pronounced. Just like she did in the ruling for Ripple. There the question is still there as to whether XRP is a security or not.

Let’s leave the SEC dispute with Grayscale, because apart from the now slightly higher Bitcoin price, there is a lot of important news.

Investors want to buy cheap and sell high

The basic rule when investing is that an asset is bought as cheaply as possible and sold as expensively as possible. Of course, this rule also applies to the crypto market. The current low Bitcoin price may or may not irk existing private sector investors. However, institutional investors are the real beneficiaries of the low price for the leading cryptocurrency Bitcoin and other altcoins.

As previously mentioned, there are efforts by several well-known money managers in the US to have exchange-traded Bitcoin ETFs approved by the SEC. These would then be fully secured by physical Bitcoin and this is where the currently low BTC rate comes into play.

When crypto prices are high, investors get fewer coins for a fixed amount they want to invest. Bitcoin in particular is currently at an unusually low level and volatility is also falling. As the Coinglass chart below shows, the volatility index for Bitcoin is at historically low levels. Together with the low prices, there are great advantages, especially for institutional investors.

BTC price in the basement – These are the advantages for institutional investors

In view of the low prices, early investors are getting nervous and parting with their BTC holdings. SpaceX, Elon Musk’s company, also left just a few days ago all his bitcoin separated. The opportunity for investors to benefit even when prices move down is particularly evident in the area of ​​crypto CFDs. Here, investors, often professional day traders, speculate on fluctuations in the price of cryptocurrencies. And both upwards and downwards. If the investor bets on falling prices of the asset, then this speculation is called shorting or short selling.

But while private investors are either relaxed about the long-term increase in value of Bitcoin and HODL their coins in the depot, or hectically perceive the losses in the depot, institutions currently have no problems with the low BTC price.

These are the advantages of the low Bitcoin price for institutional investors:

  1. Asset managers such as Grayscale and BlackRock have filed applications with the US Securities and Exchange Commission, the SEC. Approval is mandatory in order to be able to offer exchange-traded Bitcoin ETFs. Another prerequisite is that the invested funds of the investors are secured by the cryptocurrency. For example, BlackRock wants to work with Coinbase as a crypto custodian. This means that every provider of exchange-traded Bitcoin ETFs must first buy the appropriate amounts of Bitcoin out of their own pocket. A low price therefore plays into the hands of the preparations of the large asset managers, who can now stock up on Bitcoin much more cheaply. This protects your resources and, if you sell bitcoins, brings you big profits when prices rise.
  2. Some headlines are talking about the crypto bubble bursting soon. Perhaps understandable given the still unusually low volatility and the low BTC price. But as the world’s eyes turn to prices, experts are seeing positive signs for Bitcoin’s long-term appreciation. The reason for this is the investment of institutional investors, especially BlackRock, in Bitcoin mining. BlackRock is invested in 4 of the 5 largest bitcoin miners and it’s definitely not without reason.

Critics are not very enthusiastic about the financial investments of asset managers like BlackRock, because they see an increasing centralization of Bitcoin. Ethereum is also currently trading lower than expected. Here, too, there could be a connection to the ETFs applied for, because in addition to Bitcoin ETFs, Ethereum ETFs are also to be set up. Bitcoin is trading at €25,726.55 today and Ethereum at €1,600.30. ETH was also up over 5.50% due to positive news in the Grayscale/SEC dispute.

Private investors can diversify their portfolio

Anyone who, as a private investor, does not want to part with their Bitcoin in the depot or is looking for a way to make their portfolio more robust could be interested in these two crypto pre-sales. Both meme coins are available very cheaply in advance, so that a small financial investment is possible here. Due to the low price and the high potential that various experts attest to the two meme coins, there could be very high growth opportunities.

Wall Street Memes is only $0.0337 in the final pre-sale phase!

Sonik Coin is only $0.000014 in the only pre-sale period!

Conclusion: The next few days will show how sustainable the price recovery of Bitcoin and Ethereum was. Private investors should be pleased with any positive increase in value. For institutional investors, however, the crypto courses could lead to new purchases, mainly out of fear that Bitcoin and Ethereum will continue to rise in value. This is the only way to place the coins in a safe deposit account and use them to secure the crypto ETFs that may be about to be approved.

————————————————Your capital may be at risk. This website is not intended for use in any jurisdiction where the trading or investment described is prohibited and should be used only by persons and in ways permitted by law. Your investment may not be eligible for investor protection in your country or country of residence. Do your own due diligence. This website is available to you free of charge. We may receive commissions from the companies that we offer on this website. —————————————–

About the author: Stefanie Herrnberger works as a freelance speaker and editor. Her many years of professional experience in the areas of blockchain, cryptocurrencies and NFTs offer her the perfect background to report on current news and developments on decentralized and central financial markets. Stefanie has been investing in cryptocurrencies for several years. She understands the challenges and opportunities for crypto traders. Publications: https://de.cryptonews.com/editors/stefanie-herrnberger https://blockchain-technologie.digital/ https://www.facebook.com/groups/cryptonewsde/



ttn-28