CIO BlockTower Capital: Institute leiden unter dem Verlust-Gewinn-Syndrom
Institutional Investors are Investing In Cryptocurrencies To Stay Rich According to CIO BlockTower Capital
This is not about buying BTC in order to obtain benefits, but to protect your lifestyle, status, wealth. This is a kind of defensive approach, similar to the loss of profit syndrome. Invest in an emerging and potentially profitable space to protect what has been achieved so far.
In his work, Paul often communicates with the tycoons of the financial world. Many billionaires have shown an interesting shift in thinking. They look at their colleagues and even competitors, for example - they see that they have 10 percent of their capital invested in Bitcoins.
They begin to think that if they miss the period of profitable investments in BTC now, and the crypto market continues to grow, they will be left behind. They will not get into this “club of the rich”, they will not be able to compete with those who have invested in Bitcoin. Nothing can be fixed, since the moment has been missed.
This makes them to passively invest in BTC like the rest. To keep up. That is, it is no longer a question of accumulating wealth. Billionaires and business tycoons already have capital. It is important to protect him in order to continue to remain rich.
Wealthy private investors enter the market. They are buying up Bitcoins en masse. The large coin movements recorded by Whale Alert since the fall of 2020 show that hundreds of wallets from 1,000 BTC and up have appeared on the Bitcoin blockchain.
This led to the displacement of huge amounts from exchanges and their withdrawal through OTC trades. For example, $1.7 billion worth of Bitcoin was withdrawn from Coinbase when it reached $30,000 in value. This pushed the cryptocurrency to a new all-time high of $42,000.
Institutional investment has helped reduce Bitcoin volatility. The rich buy, but do not plan to sell, but will walk. It heals the market. Of course, volatility is not going anywhere, but it will be significantly lower.
BlockTower Capital is the largest hedge fund founded in 2017. Its CIO, Ari Paul, who is also a co-founder, is well versed in financial technology.