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Cathie Woods of ARK has called for a $500k target for BTC

BTC – Technical and Fundamental Report

US regulatory pressures continue to increase in the crypto space. Here at Miningstore we only see this news as positive as regulation provides clarity and investor safeguards. This would also suggest the US government is anticipating cryptos to become widely adopted in the community. Increased regulation also opens the doors for institutions to move deeper into the space, which is what we need for the price of BTC to continue to the upside.

Last week, fund flows into the crypto market remained positive despite the pullback across the majority of coins. Digital asset investment products saw inflows totalling US$57m, posting a 4th consecutive week of inflows. The inflows from institutional money has helped the BTC spot price gain over 13% from last week’s report, which has resulted in an improvement in the mining economics in USD terms.

Asset managers have accumulated roughly 5.6% of the total circulating supply of BTC. Grayscale Bitcoin Trust takes the top spot with 654,600 worth of BTC. What this tells us is institutional level investors are continuing to purchase digital assets and the proposed regulation changes in the US will pave the way for other institutions to follow suit.

Currently, there are 34 public companies holding BTC on their balance sheet. There are also other big players in the US market making moves in the crypto space. Morgan Stanley is now the second-largest shareholder of the Grayscale BTC trust behind ARK Investment Management (Cathie Woods). Many corporations are seeking exposure in the crypto space and are doing so through funds.

Cathie Woods the Chief Exec of ARK has called for a $500k target for BTC in just a few years.

“If we’re right and companies continue to diversify their cash into something like bitcoin, and institutional investors start allocating 5% of their funds, we believe that the price will be ten-fold of where it is today,” said Wood, speaking to CNBC anchor Andrew Ross Sorkin at the Salt technology conference in New York. Cathie Woods is anticipating US institutions to begin diversifying into the crypto space, this would mean even larger inflows than what has been seen previously.

The fundamentals are painting a very bright future from a mining perspective and BTC spot price perspective.


BTC chart before Cathie Woods of ARK has called for a $500k target for BTC

A short-term base has been set up at the $42,000 support. This level is highly significant as it was previously used as resistance on multiple occasions. Price action generally gets rejected from a previous high or low. Therefore once the $52k short term resistance is taken out we can expect a reaction from the major $60k top. Investors can use the $42k support as an entry point to pick up BTC – if there is a revisit over the next couple of weeks.

Whilst institutional inflows remain positive we can remain in the bullish camp. The sharp sell-off in the crypto space was most likely due to over-leveraged long traders.

Liquidated Traders

Futures Long Liquidations

Glassnode has highlighted how speculators faced a tough week in the market. The initial rally in BTC prices liquidated the majority of SHORT sellers, which was followed by a price dump in BTC, consequently liquidating the majority of LONG buyers. The flash crash scenarios are generally used to wipe out weak hands in the market.

For those of us who are accumulating BTC for the longer term, it provides an opportunity to continue picking up BTC at a discount along side the institutions.

That is all for now legends!

Tony Fernandez

Head Market Analyst

Book Mining Consultation

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