From Terraform Labs to Exxon, Institutions Scoop $BTC Ahead of Next Bull Cycle

  • Institutions such as Exxon and Luna Foundation Guard appear keen on accumulating BTC, fueling the asset’s demand.
  • Arcane Reserves observed a surge in paper $BTC buys as overall Bitcoin disclosure in ProShares ETH explore new ATH.
  • Wall Street veteran Caitlin Long argues BTC price stays lower because of the paper Bitcoin supply surge.

The Luna Foundation Guard is among the institutions planning to accumulate as much as possible as BTC appears lucrative asset. Proponents observed a colossal sure in paper $BTC as the overall BTC exposure by ProShares ETF touched new ATHs.

BTC Price Witnesses Supply Shock

The Luna Foundation is creating a $10 billion worth of Bitcoin reserve. The non-profit organization is on the list of institutions scooping up BTC for their portfolios. Terraform Labs CEO Do Know declared plans to add LUNA’s BTC reserves to $3B and acquire $10B in BTC. The CEO stated that BTC reserves introduced a new fiscal era for the “Bitcoin standard.” The network raised the money to purchase BTC by selling UST and LUNA over the counter.

One of the leading publicly traded global gas and oil companies, Exxon, advertises its additional natural gas for cryptocurrency mining activities. The gas and oil giant introduced the program in North Dakota. Meanwhile, the surging BTC demand by institutions has the company planning to launch similar mining undertakings in Nigeria, Germany, Argentina, Guyana, and Alaska.

Surprisingly, BTC demand by institutions comes through paper assets via contact to ETFs such as ProShares, trading on New York Stock Exchange. Arcane Research data show total BTC exposure in ProShares exchange-traded funds hit new ATHs beyond 28,000 Bitcoins.

The past two weeks noted massive inflows that had BTC ETF’s exposure on new record highs. However, the surged paper BTC relevance has worried Wall Street expert Caitlin Long. She stated that paper assets bring a fake supply that fulfills genuine demand, triggering price drops.

Long added that MVRV (Market Value to Realized Value) isn’t ideal in valuing Bitcoin. BTC MVRV might not be suitable as intermediaries operate fractional reserves, and the figure is likely erroneous. She trusts that BTC’s value exceeds the market price. Nevertheless, paper claims are more than real on-chain Bitcoin, and enthusiasts holding the current suffer this difference. The surge in paper BTC might lead to colossal supply shock for BTC, triggering upsides.

Analysts predicted rallies after evaluating Bitcoin’s price trends. FXStreet experts stated that the latest run-up pushed BTC beyond the 50- and 100-day SMA. The crypto should overcome obstacles such as the 200-day Simple Moving Average for a move towards the $60K psychological barrier. However, the analysts explored the potential of BTC turning downside and capitulating.

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