Financial institutions BlackRock and Fidelity just bought $494,000,000 worth of BTC.
Some see these as a bullish move for BTC price to pump exponentially.
Meanwhile, others see institutional buying as a step back from decentralization.
Bitcoin adoption is growing steadily, with the most institutional adoption seen this bull cycle than any other. Most recently, BlackRock and Fidelity just brought $494,000,000 worth of Bitcoin (BTC). This is seen as a very bullish move in terms of the price of BTC and how much it can pump this bull cycle as more big financial institutions continue to buy the pioneer crypto asset. However, some see this move as a step back from decentralization.
BlackRock and Fidelity Just Brought $494,000,000 Worth of BTC
Since the last bull cycle, the adoption of BTC has moved from heavy retail adoption to heavy institutional adoption. Before the last bull cycle, the only BTC holders were early adopters in retail and BTC miners. Last bull cycle that changed when the President of El Salvador, Nayib Bukele, officially made Bitcoin a legal tender. This led to a shift in BTC adoption when more official institutions began to adopt BTC.
Last bull cycle the heaviest BTC buyers were El Salvador and Michael Saylor’s Strategy. Even in this bull cycle, both parties are heavily accumulating Bitcoin and are in the lead. This bull cycle, big and reputable financial institutions entered the BTC accumulation race. To name a few, BlackRock, VanEck, Fidelity, and many more have been heavily accumulating Bitcoin and providing BTC ETF services.
https://twitter.com/Ashcryptoreal/status/1924699219165593639
As we can see from the post above, BlackRock and Fidelity just bought $494,000,000 worth of Bitcoin. Just like how Strategy just bought over 7,000 BTC to add to its already over $40 billion worth of BTC accumulated. These moves are seen as bullish signs by the crypto community and the greater crypto market, as more institutional buying, especially a continuous buying, would mean that the price of BTC would pump steadily as well.
A Path Away From True Decentralization?
On the other hand, early Bitcoin adopters see large institutional buying as a move against the philosophy of Bitcoin, which aimed to bring decentralization to the financial realm. What this means is that Bitcoin (BTC) gave anyone and everyone an equal chance to buy and hold wealth that would continue to grow due to a low supply and growing demand blueprint. However, if the majority of a limited supply is owned by the same financial institutions Bitcoin was created to destroy, then what good is Bitcoin adoption when it isn’t being used to fulfil its initial purpose?
Responses to the post above, draws attention to this possible loss of Bitcoin’s vision. Bitcoin began to emower the masse, not to give the same people in power that power back in a different and stronger form. Despite this negative thought, others see financial institutional adoption as a way to widen access to Bitcoin for the masses, ultimately, it is the masses that should hold Bitcoin (BTC).
