The twins believe that this current rally is sustainable, unlike the previous one which saw the price experience series of falls.
Bitcoin recent bull run, according to the Winklevoss twins, is different from the last one (2017 boom) and the twins highlighted some reasons behind it. The crypto world was thrown into a frenzy after the biggest digital coin rallied past its previous all-time high, amid weeks of a bull run.
The surge which saw bitcoin reach a new milestone was met with conflicting views as to how the digital coin rallied to achieve that. Most crypto experts and investors weren’t looking to find any fault with Bitcoin’s surge as many factors come into play regarding the nature of the digital coin. Recent reports suggest that the current bull run is indeed different from the last one except that, the difference cited, is not the same as the one from the Winklevoss twins.
Experts believe that this current rally is sustainable unlike that of the last one which saw the price experience series of falls, slashing its value into half in just two months. The most talked-about factor for this rally, is the “new wave of North America institutional investors” that the current market has gained.
The Winklevoss twins, however, very much used a whole set of words when describing the aforementioned factor, stating that those institutional investors are rather tech-savvy investors buying millions of Bitcoin and using them in a wholly different way from the average cryptocurrency investor.
The Winklevoss twins are widely known in the world of cryptocurrency as early investors and for their general optimistic views on the price of Bitcoin. Tyler Winklevoss, the Co-founder and CEO of the US-based custody provider and cryptocurrency exchange Gemini, stated that these savvy investors played a big part in this year’s bitcoin bull run, separating it from the previous boom. They are the smartest people in the room, the most sophisticated investors that no one’s heard about, buying millions of Bitcoin quietly, he said when describing them.
Tyler cited billionaire hedge fund managers such as Stanley Druckenmiller and Paul Tudor Jones as well as publicly traded companies Square and MicroStrategy as part of the sophisticated investors. He explained that these “characters” were absent during the 2017 bitcoin boom and are the reason why the current rally isn’t retail-driven like the last one.
Tyler revealed that Square and MicroStrategy are amongst million dollar companies converting their treasury cash into bitcoin amid fears of inflation stemming from the money printing and stimulus checks from the pandemic lockdown.
MicroStrategy bought 38,250 BTC this year, which was followed by the purchase of 4,709 BTC by Square, an American mobile payment and financial services company.
The CEO of Gemini dismissed the involvement of these characters as a “fear of missing out” thing unlike the last rally stated that he believes that these companies and high profile people are getting deep into bitcoin because they believe the digital coin has what it takes to dethrone gold as a store of value to shield against inflation.