Welcome back to the BTC Etc podcast, where Anthony “Pomp” Pompliano and Will Clemente join forces with eToro to bring you a monthly dose of crypto knowledge and expert opinions.
In our latest episode, Pomp and Will uncover the driving forces behind Bitcoin’s recent price surges, looking at the escalating scarcity of Bitcoin and the impact the halving could have on this, examining the prospects of a Bitcoin spot ETF, and observing the transformative shift from a retail playground to a high-stakes arena dominated by corporate titans and industry experts.
Scarcity unleashed
Bitcoin’s scarcity is stealing the spotlight, and according to Will, it’s not just a debate: “on a quantifiable basis, Bitcoin is now more scarce than gold.” The stock-to-flow ratio, a sacred metric in commodities, echoes this rarity, projecting that post-halving, Bitcoin’s ratio will outshine gold’s. A compelling nugget for both seasoned investors and those eyeing the crypto realm.
The illiquidity quandary
Hold tight as Will and Anthony dissect the impact of Bitcoin halving, unveiling a market teetering on the edge of illiquidity, with a whopping 88% held by long-term investors. Anthony drops a bombshell: “88% or so of all Bitcoin has not moved in the last three months.” With the impending halving to slash daily supply by 50%, Bitcoin is set to become even scarcer, triggering potential price upheavals in this cocktail of illiquidity and reduced supply.
The rise of the corporate titans
The landscape of Bitcoin investors, and market movers and dynamics, are undergoing radical makeovers. Unlike early 2021, when retail investors flooded in with millions of dollars in stimulus checks, we’ve now entered a new era where corporate entities rule the roost with amounts totalling more than ten times that.
Will manages to capture the essence perfectly, “it’s kind of bittersweet that we’re now going to see… more suits than hoodies.” The sheer scale of investment flooding into Bitcoin from the US, Europe, and the Far East indicates that these market movers are capable of influencing Bitcoin in ways previously unseen.
Anthony drops a truth bomb, “these guys are stepping in, and when they’re stepping in, they are usually doing so with tens of billions of dollars.”
Tune in to the BTC Etc podcast, and join the crypto conversation 🎙️💸 #BTCEtcPodcast