4/07 ANDY HOFFMAN (CryptoGoldCentral.com): Is Bitcoin $6,000 Indeed the “Institutional Floor?”

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In October, I wrote that when the Bitcoin price reached $6,000, it would breach the $100 billion market cap level that makes it investable for essentially all the world’s deep-pocketed investors. Max Keiser called it the “Wall Street Put”; although more accurately, it’s a broader-based “institutional floor,” as many of these investors are not financial entities, but billionaires, family offices, municipalities, corporations, and sovereignties.

Shortly afterwards, Brian Kelly of CNBC proclaimed a “wall of institutional money” was headed for crypto; which, per this article a month earlier, I predicted to arrive January 1st, in the form of hundreds of newly-launched Crypto Hedge Funds. Not to mention, the launch of CBOE and CME Bitcoin futures in late December – which I assure you, was not a coincidence.

As I have noted countless times, said “wall” of recklessly “diversified” money was the primary reason for the historic, dotcom-like altcoin bubble that ensued; yielding the healthy, much-needed correction we are experiencing today, to separate the wheat from the chaff - which in cryptocurrency, is less than 5% wheat, 95%-plus chaff.

When the sector went into freefall in late January, there was no way of predicting where Bitcoin’s bottom would be; and even today, more than two months later – there’s no guarantee the bottom is in. That said, it this far appears that in the mid-$6,000s, selling pressure is dwindling – as each time it gets to the $6,400-$6,600 level, significant buying “magically” appears.

https://twitter.com/Andy_Hoffman_CG/status/982444282811367424

Moreover, the fact that the bottom thus far was $5,970 (on February 6th, amidst panic-selling conditions catalyzed by the Mt. Gox “Bear Whale” selling 18,000 Bitcoin in a matter of hours) is no coincidence either, given that $5,970 represents an EXACTLY $100 billion market cap, clearly the “institutional put” was in place.

This past week was an exhausting one; as yet again, a major rally attempt (to $7,500) was met by stifling selling pressure. However, it again exhausted itself around $6,500 – with yesterday’s tight trading range, on low volume, around $6,600 representing the lowest volatility day I can remember in many, many months. The subsequent surge to $6,850 last night – where it has remained for nearly 12 hours, in yet another tight range characterized by low volatility – yields confidence, but not conclusions, that selling pressure is indeed waning.

We’ll see soon, if this theory is indeed correct - that $6,000 is indeed the “institutional floor.” That said, at a Mayer Multiple lower than 90% of all Bitcoin trading days throughout its nine-plus year history; amidst fundamentals better than 100% of said days; it would seem the odds are stacked heavily in the bulls’ favor.

https://twitter.com/TIPMayerMultple/status/982545166274826240

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