As Bitcoin continues to move within its three-month range, processes are starting to take place in the market that could change investors' attitudes towards digital assets and BTC in particular. We are talking about the investment company SkyBridge Capital, which has decided to move all assets into Bitcoin and Ethereum. Given the current situation, this is a bold and important decision that could set an example for other institutional investors.
Hedge fund head Anthony Scaramucci stated that the current geopolitical situation, as well as the sanctions-induced economic crisis, leave no choice to the company. The development of many economic sectors and markets remains hidden by the unpredictability of the current geopolitical environment. In addition, the entrepreneur believes that the growing government deficit will be a constraint on the development of most markets. However, Scaramucci is confident that the trend in the cryptocurrency market is clear and therefore the company will bet on the development of digital assets.
SkyBridge Capital's decision could be a game changer for the market, as Tesla once did with its purchase of BTC coins. Scaramucci's new policy aims to use the major cryptocurrency as a backup. Luna Foundation and MicroStrategy have adopted a similar strategy. An important aspect that prompted the company to take such a step could be the shortage of the asset, as BTC issuance had reached 90% as of the end of April. Given the increasing complexity of mining and the economy's gradual reduction in liquidity, the main cryptocurrency could be a solution to the problem.
On the one hand, the asset will appreciate because of its shortage and, on the other hand, it will protect capital from inflation. This is a very important synergy, as SkyBridge Capital decides to invest heavily in cryptocurrencies because of the serious drawdown in its investment portfolio. Cryptocurrencies and Bitcoin have proven to be a successful diversification asset.
The problem, however, is that such use of Bitcoin is based on a strategy of long-term moves with local movements of capital between investment portfolios within the same framework. This is similar to the current market situation, with investors passively hoarding coins for long-term storage while other players dump liquidity from the spot and futures markets. In such a situation, long-term investors are not ready for active price pressure.
However, as we see the buyers are ready to defend the structure of the ascending parallel channel and $39.8k support zone. At the end of yesterday's day, BTC/USD momentarily reached $38k, after which buyers started pushing the price above $40k. This suggests that a tightening process is gradually taking place, as the sellers' zone of interest starts above $41.5k and buyers are ready to defend positions around $38k.
Due to this confluence of circumstances, the corridor for price movements is gradually narrowing, which means that a full-blown impulse exit outside the current corridor is to be expected soon. There are no clear signs of BTC price declining, but there is a local bearish advantage. Based on that, there is a chance that the price will break through the $38k mark and move into the $32k-$35k range.