Explore the dynamic landscape of Bitcoin investments with this week’s roundup of key developments and expert insights. From Robert Kiyosaki’s bullish stance on Bitcoin amidst market volatility to BlackRock’s cautious approach towards Bitcoin ETFs, and MicroStrategy’s significant BTC acquisition, this article delves into the latest trends shaping the cryptocurrency market. Discover how these influential figures and events are influencing investor sentiment and the broader digital asset ecosystem.
Highlights of the Week in Bitcoin
Robert Kiyosaki Asserts High Prices Shouldn’t Be an “Excuse” to Avoid Buying Bitcoin (BTC)
Robert Kiyosaki, renowned financial expert and author of “Rich Dad, Poor Dad,” urged those questioning if the current price of Bitcoin (BTC) is a viable investment entry to “not be losers.”
While retail investors debate whether to avoid BTC, Kiyosaki completely dismisses this notion. He calls it a “weak excuse” for not investing, which could deprive investors of a life-changing opportunity.
I become frustrated encouraging people to buy Bitcoin. I receive so many lame excuses…. the most common excuse…. “Bitcoin is too expensive.” And it is high… yet not as high as it’s going to go. I simply repeat my rich dad’s lesson on investing…. “ Your profit is made when you…
— Robert Kiyosaki (@theRealKiyosaki) June 15, 2024
Retail investors appear skeptical about Bitcoin’s price action, as the cryptocurrency has been stuck in a volatile consolidation phase since its all-time highs in March.
The longer BTC stays in this range, the more hesitant retail investors become, fearing a pullback. Kiyosaki insists that this fear is unjustified, and most investors fail by playing on market sentiment.
Kiyosaki’s investment philosophy adheres to strategic risk-taking and market trend analysis.
He advocates for making successful investments by capitalizing on market fear and greed rather than succumbing to them.
Kiyosaki stands out for his unique investment strategy, viewing deflationary assets like gold, silver, and Bitcoin as great hedges against fiat currency devaluation.
Investing in Bitcoin and Ethereum, According to Bitwise’s CIO
Matt Hougan, CIO of Bitwise, has shared his views on cryptocurrencies. He suggests that investors should hold a variety of crypto assets if they want to invest broadly in cryptocurrencies.
Three reasons to add ETH to your portfolio, and one important reason to stay BTC-only.
A thread.
— Matt Hougan (@Matt_Hougan) June 20, 2024
According to Hougan, there are two additional aspects that contribute to the substantial returns of cryptocurrencies. These are the use cases of projects, especially Ethereum, and diversification. Evidently, these three factors are hard to find in other assets.
Hougan believes Bitcoin has the potential to become the new dominant form of currency in the crypto space, given its significant leadership. Additionally, he stated that the currency market is enormous, and if Bitcoin succeeds, there is still much room for growth.
BlackRock Executive Says Caution Remains Toward Bitcoin ETFs
At the Coinbase State of Crypto Summit, Samara Cohen, BlackRock’s Chief Investment Officer for Indexed Investments, discussed the cautious yet diligent approach financial advisors are taking towards spot Bitcoin ETFs.
Cohen noted that while 80% of Bitcoin ETF purchases come from self-directed investors, financial advisors are more cautious due to Bitcoin’s history of extreme price volatility and concerns over regulatory compliance and fraud.
Despite the caution, Cohen remains optimistic and believes it is only a matter of time before new capital flows into Bitcoin ETFs.
CoinShares: Bitcoin Investment Products Recorded Over $600 Million in Withdrawals Last Week
Bitcoin (BTC) investment products saw total withdrawals of $621 million last week, following mixed economic signals from the United States, according to asset manager CoinShares.
Across the broader digital asset ecosystem, investment products recorded net outflows of $600 million, driven entirely by BTC losses. This was the largest figure since March 22.
Grayscale’s GBTC was the most affected, as usual, experiencing outflows of $273 million.
The outflows offset minor inflows for a wide selection of altcoins, including ETH, LIDO, and XRP, CoinShares said on Monday.
U.S. inflation data for May, measured by the Consumer Price Index (CPI), exceeded expectations when reported as stable for the month.
However, the good news was soon disrupted when the Federal Reserve’s Federal Open Market Committee (FOMC) maintained its benchmark rate range between 5.25% and 5.50%. Its economic outlook predicted only a 25-basis-point rate cut this year.
Bitcoin was depressed by this hard stance, falling to its lowest point in four weeks on Friday at $65,100.
At the time of writing, BTC remained stable at $66,000. The CoinDesk 20 (CD20) index, which measures the performance of the overall digital asset market, is down 1.75%.
MicroStrategy Acquires More Bitcoin After Completing Convertible Bond Offering
In a strategic move underscoring its strong commitment to Bitcoin, MicroStrategy, led by Michael Saylor, has acquired an additional 11,931 Bitcoins (BTC). This significant purchase comes at a crucial time as the company also announced the sale of $800 million in convertible notes, marking another important chapter in its Bitcoin investment history.
MicroStrategy has acquired an additional 11,931 BTC for ~$786.0M using proceeds from convertible notes & excess cash for ~$65,883 per #bitcoin. As of 6/20/24, $MSTR hodls 226,331 $BTC acquired for ~$8.33B at average price of $36,798 per bitcoin.https://t.co/jE9dGqqnON
— Michael Saylor⚡️ (@saylor) June 20, 2024
Initially, the offering size was $500 million, then it was increased to $700 million, and finally closed at $800 million. In March, the company added 9,245 BTC for $623 million following a similar debt issuance.
The company’s total holdings amount to 226,331 BTC, valued at about $15 billion. The average purchase price of these Bitcoins has been $36,798 each.
Interestingly, despite the massive purchase, MicroStrategy appears to be second only to BlackRock, which currently holds over 305,000 BTC.
Drake’s Bet on Bitcoin: A Win for the Celtics and a Loss for the Rapper
Canadian rapper Drake frequently showcases his luxurious lifestyle on Instagram, including his daring Bitcoin bets on sports events through Stake, his associated betting platform.
On June 6, Drake posted on Instagram, showing a screenshot of a $500,000 Bitcoin bet on the Dallas Mavericks, which would have paid $1.375 million if the Texas team had won. “I bet on Dallas because I’m Texan.”
Instead, the Boston Celtics secured the title with a decisive 106-88 home victory, handing Drake a tough loss in the basketball championship.
In the same Instagram post, Drake shared that he also bet $500,000 on the outcome of the NHL Stanley Cup Final, placing the same bet on the Edmonton Oilers to win. However, the result was also unfavorable for Drake.
This year, the rapper suffered losses of $565,000 in the Fury vs. Usyk fight and $615,000 in Bitcoin after Ngannou’s defeat by Joshua. In 2022, Drake lost over $230,000 in BTC betting on Formula One driver Charles Leclerc in the Spanish Grand Prix. He also lost over $200,000 betting on Jorge Masvidal in a UFC fight against Colby Covington.
Nonetheless, Drake has also experienced significant wins in betting. His 2022 bets on the NFL Finals brought him over $2 million. These results illustrate the unpredictable nature of high-stakes betting, especially with the involvement of cryptocurrencies.
Conclusion
This week in Bitcoin news highlights the diverse opinions and significant movements in the cryptocurrency market. Robert Kiyosaki’s encouragement to invest in BTC, despite high prices, and BlackRock’s cautious approach to Bitcoin ETFs showcase the spectrum of investor sentiments. Meanwhile, MicroStrategy’s substantial Bitcoin acquisition and CoinShares’ reported outflows indicate ongoing volatility and strategic positioning in the market. Finally, Drake’s Bitcoin betting adventures underscore the high-risk, high-reward nature of cryptocurrency investments. As the market continues to evolve, staying informed on these developments is crucial for both new and seasoned investors.
FAQs
What did Robert Kiyosaki say about investing in Bitcoin?
Robert Kiyosaki urged investors to not use high prices as an excuse to avoid buying Bitcoin, emphasizing the potential life-changing opportunities BTC presents.
What is the stance of BlackRock on Bitcoin ETFs?
BlackRock’s CIO, Samara Cohen, mentioned that financial advisors are cautious but optimistic about Bitcoin ETFs due to historical price volatility and regulatory concerns.
How much Bitcoin did MicroStrategy acquire recently?
MicroStrategy acquired an additional 11,931 Bitcoins, bringing their total holdings to 226,331 BTC.
What were the recent Bitcoin investment product outflows reported by CoinShares?
CoinShares reported $621 million in Bitcoin investment product withdrawals last week, driven by mixed economic signals from the United States.
What are Matt Hougan’s views on investing in cryptocurrencies?
Matt Hougan, CIO of Bitwise, suggests diversifying investments across various crypto assets and emphasizes the importance of use cases, especially for Ethereum.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Please consult with a financial professional before making any investment decisions.
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