A recent significant shift in Bitcoin storage practices has caught the attention of analysts. Crypto Rover, a prominent cryptocurrency analyst, recently took to Twitter to highlight a noteworthy trend: Bitcoin is being withdrawn from exchanges and moved into cold storage at an unprecedented rate.
The shift towards self-custody of BTC signifies a growing preference among investors to secure their assets offline in wallets and hardware devices rather than keeping them readily available on crypto exchanges.
However, the potential selling pressure on the market is expected to decrease. This move is seen as a strategic move to HODL and ride out the turbulence in the crypto market, as opposed to panic selling during bearish phases.
Bitcoin’s Potential Surge to $200,000: Six Reasons Why
Not content with one revelatory tweet, Rover went on to speculate about the potential impact of the approval of the BlackRock Spot ETF. In a bold prediction, he suggested that Bitcoin could soar to heights exceeding $200,000 if the ETF garners the green light from regulators.
His argument is backed by six compelling reasons that highlight the imminent possibility of this approval.
Firstly, Rover points out that BlackRock boasts an impressive track record of ETF approvals, with a staggering 99.8% success rate. Only one rejection in its history underscores the company’s expertise in navigating the regulatory landscape.
Secondly, during the tumultuous waters of the 2008 financial crisis, both the U.S. government and the Federal Reserve turned to BlackRock for guidance. This fact speaks volumes about the level of trust in the world’s largest asset manager, making it a formidable player in the cryptocurrency market.
Furthermore, the CEO of BlackRock has recently expressed a favorable stance on Bitcoin, likening it to “digital gold” and emphasizing its potential as a diversification tool within investment portfolios.
Adding to the intrigue, BlackRock has previously introduced a private Bitcoin ETF catering to institutional investors, showcasing their interest and expertise in the crypto space.
Moreover, spot Bitcoin ETFs have already gained regulatory approval and are active in both Europe and Canada, indicating a growing acceptance of these financial instruments.
Last, other major asset management firms such as Vanguard and Fidelity have submitted their own applications for Bitcoin spot ETFs during this cycle, further underscoring the rising institutional interest in cryptocurrency.
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