Cryptocurrency
‘Shorts will be dead’ — Why Dan Tapiero expects a massive Bitcoin shortage
‘Shorts will be dead’ — Why Dan Tapiero expects a massive Bitcoin shortage: As reported at Cointelegraph, “In recent months, there has been a considerable spike in institutional demand for Bitcoin (BTC) following several high profile investments. Over time, asset manager and 10T Holdings co-founder Dan Tapiero believes this could lead to a problematic shortage […]
‘Shorts will be dead’ — Why Dan Tapiero expects a massive Bitcoin shortage:
As reported at Cointelegraph, “In recent months, there has been a considerable spike in institutional demand for Bitcoin (BTC) following several high profile investments. Over time, asset manager and 10T Holdings co-founder Dan Tapiero believes this could lead to a problematic shortage in BTC.
Alongside investments from Square, MicroStrategy and Stone Ridge, Bitcoin inflows to Grayscale Bitcoin Trust have surged.
Based on the rapid growth of institutional investments, Tapiero warns that short-sellers could see trouble in the future.
Institutional investors are rushing into Bitcoin
In the third quarter of 2020, the Grayscale Bitcoin Trust recorded an inflow of $1.05 billion. This marked the firm’s first billion-dollar quarter and also highlights record-high institutional demand. The firm’s quarterly report reads:
“Grayscale recorded its largest ever quarterly inflows, over $1 billion in 3Q20, making it the third consecutive record-breaking quarter. Year-to-date investment into the Grayscale family of products has surpassed $2.4 billion, more than double the $1.2 billion cumulative inflow into the products from 2013-2019.”
The timing of Grayscale’s record-breaking quarter is noteworthy because it comes several months after BTC price dropped below $3,600.
On March 13, Bitcoin fell $3,600 after a $1 billion worth of futures contracts were liquidated. BTC has steadily recovered ever since, eventually rising above $12,500 in early September…”