The Bull Affair Forms For Bitcoin

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Ollie Leech, publisher of CoinDesk Learn, joins Yahoo Finance to discuss the positive news that is pushing the price of Bitcoin up.

Video transcript

– OK. Let’s take a look at what’s going on in the crypto corner with Bitcoin. Because wow, weren’t we talking, what was it about 10 days ago? $ 41,000 for Bitcoin? Oops, that was wrong. Check it out. It’s almost $ 55,000, not quite $ 60. But are we going? Let’s call on Ollie Leech, CoinDesk’s learning editor. He joins us from the north of England to teach us things about Bitcoin in particular.

And October and November are, I’ll use the word crucial, but these are important months for Bitcoin investors. Why October, November?

OLLIE LEECH: It’s one of those things that no one is really sure about. This is one of those, is it a self-fulfilling prophecy? Is it because a lot of regulators and platforms are pushing their updates and sort of launching them towards the end of the year, and so everyone is looking forward to that? We just don’t know. I mean, looking at it right now, everything seems to be falling into place for Bitcoin. And oddly enough, it’s always interesting to see how these cycles rock on a dime. Go back a few weeks ago we were talking about DeFi, Ethereum, and now we have seen other altcoins start to drop.

And now Bitcoin is in the driver’s seat. Thus, 60% of the quarterly candles in Q4 were in the green. We know that. So it seems that everyone is anticipating something. And you also have to take into consideration that this is a year after halving, which is still an exciting time. And we haven’t hit that 100K yet. So people are watching, are we going to get to that point again? So here is. All eyes are on the next few months. And it’s a really exciting time again.

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SEANA SMITH: Ollie, we’ve talked a few times in the past about regulation. SEC Chairman Gary Gensler was before lawmakers again yesterday to testify. There are actually 19 lawmakers who took the opportunity to ask Gensler about the regulation of crypto. Something you heard yesterday that stood out on you or could really be a part of why we’re seeing that jump today?

OLLIE LEECH: I think it has more to do with that kind of optimism around the ETF. That really seems to be the root of a lot of this. Bloomberg’s Eric Balchunas said there is a 75% chance that we will see an ETF happen soon. And that’s motivated, obviously the futures ETF is what Gary Gensler is really looking to push forward. He believes that the more secure there is more consumer protection around a futures ETF than a normal ETF. And that’s part of why he really pushes this one first. But there are 20 ETFs stacked on his desk. And we got the approval of the ProShares Bitcoin ETF strategy on October 18th.

And there’s another couple showing up in November. So all eyes are on, are we finally going to have an ETF in the US? And that just seems to push a lot of that.

– There was a statistic that something like 85% of Bitcoin is owned. It is not traded. What does this mean for those of us who are just the average investor?

OLLIE LEECH: Yeah, so it shows, I think it was 155 days, I think I’m right that it’s the metric. And they were saying that now the number of wallets that have held Bitcoin for less than 155 days is 20%. 80% is more than that. So this shows that a lot of people are now optimistic. They hold Bitcoin. They will not let go. This means that if the average retail investor or whoever wants to buy it now, they will have to look directly to the outstanding supply from the miners. So, this supply gets smaller and smaller over the next period of Bitcoin’s life.

But the demand is increasing. 80%, I’m sure we’ll see that number increase over time. Yes, it just shows that the demand for this asset is getting huge. And a lot of that has to do with the adoption we’re seeing now. Look at Bancorp’s bank, America’s fifth largest bank. We find that this has launched its own crypto custody service. We see Bank of America talking about its own coverage now. Everything is coming together in a really nice way right now.

SEANA SMITH: Yeah, Ollie. It’s interesting. You mention institutional involvement. And we have talked about it several times in the past. In terms of inflows, on the institutional side, did it meet expectations? Because if there had been a lot of enthusiasm around this at the beginning of the year. And then there was a little lull.

OLLIE LEECH: Yeah, we’re still seeing a huge amount of trading, and in particular funds are now starting to absorb a lot of Bitcoin. We have seen data from Bitrade which shows funds from Europe, the United States and Canada have accumulated over 3,000 Bitcoin in the past four weeks alone. So they still take a lot of Bitcoin. It’s probably because we see so many banks. SEBA Bank in Switzerland is also looking to become a crypto custodian. They therefore expect many institutional investors to enter this market. And they’re just looking to create services for those first customers.

So here is. It is certain that we are still seeing a lot of people using a lot of Bitcoin at this time. It is crushing our supply. And there are a lot of interesting predictions as to where we’re going to end up at the end of the year. And we’ll just see how they all play out.

– Ollie Leech is CoinDesk’s learning editor. We appreciate your presence on Yahoo Finance Live. Best wishes.

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