The minimum price for Bitcoin (BTC) in the current market cycle is $60,000, according to K33 Research, the research arm of digital asset brokerage K33.
In a post released on May 19, the cryptocurrency market intelligence firm supported its argument by citing the cryptocurrency market being supported by growing institutional adoption.
Bitcoin will not fall below $60,000, supported by institutional investment
Notably, institutional investors in Bitcoin include public and private companies, exchange-traded fund (ETF) issuers, and fund managers. It also includes regular hedge funds and trading companies, as well as pension funds and endowments.
According to CryptoQuant’s Bitcoin Fund Holdings tableCryptocurrency holdings have grown steadily among institutions. The period after 2024 will see the greatest growth.
The Bitcoin spot trading fund (ETF) is the most popular cryptocurrency product offered by institutions, with BlackRock’s iShares Bitcoin Trust holding 817,138.2 BTC. Interestingly, BlackRock itself does not hold Bitcoin until January 2024.
source: CoinMarketCap
As for holders of publicly listed companies, Strategy is leading the race, with 843,739 BTC after a period of continuous accumulation starting in August 2020.
However, recent geopolitical turmoil has caused ETF issuers to dive into Bitcoin Reduce its size. Bitcoin itself saw outflows of $982 million in the week ending May 15. However, their positions are still large compared to previous sessions.
According to Vintel Lundhead of research at K33 Research, said these conditions make an 80% price decline like the one we saw in 2018 and 2022 highly unlikely. Instead, Bitcoin is likely to consolidate between $60,000 – $75,000 without capitulation after that.
Liquidity is king
Arthur Hayes supports Bitcoin’s bullish theory this year, saying $125,000 is a “foregone conclusion.” In a mail Noting that “liquidity is king,” he argues that printing money to finance wars, service debt and fight AI-induced inflation will eventually send the currency to new highs.
With BTC trading at $77,442 at the time of writing, and falling to $59,600 this year, it remains to be seen how geopolitical and economic factors will impact its future moves.
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