As a seasoned crypto investor with over a decade of experience in the financial markets, I find Jim Bianco’s analysis thought-provoking but not entirely convincing. While his points about the concentration of Bitcoin in traditional finance being a potential red flag are valid, I believe that the success of Bitcoin ETFs is more nuanced than he suggests.
Jim Bianco from Bianco Research has expressed skepticism towards the success of Bitcoin exchange-traded funds, stating that the significant concentration of Bitcoin within conventional financial systems is not something to be cheered about. Instead, he suggests it’s a significant warning sign.
Based on the expert’s prediction, Bitcoin’s price should have reached $100,000 several months back due to numerous positive factors like significant ETF investments and the interest rate reduction by the Federal Reserve in September. But contrary to expectations, this didn’t happen.
Despite the significant inflows observed at BlackRock’s IBIT, the cost of a single Bitcoin did not reach a new peak level earlier this week.
Bianco has noted that the gold price is substantially higher due to ETF inflows.
Based on the findings of the researcher, gold Exchange Traded Funds (ETFs) predominantly attract new investments, whereas Bitcoin’s ETF inflows are primarily from sources like on-chain transactions or centralized exchanges. This is likely one of the reasons why the price of Bitcoin has been finding it difficult to rise significantly.
The transactions for Bitcoin Exchange-Traded Fund (ETF) are currently at $16,000. It appears that this money is being moved from old Coinbase individual accounts to the ETF, indicating that it might not be fresh capital.” He pointed out.
This analysis, predictably, has faced criticism from Bitcoin supporters. For example, self-proclaimed Bitcoin purist Fred Krueger argues that Bianco’s assertion lacks backing evidence. Furthermore, he points out that Bitcoin has risen by approximately 65% so far this year, surpassing the performance of gold quite substantially.
The price of Bitcoin recently dipped to the $67,000 level.
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2024-11-03 13:45