- Canada’s Purpose Bitcoin ETF has continued expanding its BTC coffers even amid massive selloffs
- Hedge funds and venture capitalists bullish on Bitcoin and crypto
- “Buy the dip” sentiment strong amid strong fundamental and technical setups
Canada’s Answer To Grayscale
While Grayscale, the top institutional Bitcoin and crypto asset management company, is based in the US, Purpose is a traditional investment firm based in Canada. But there are a couple of similarities between the two. Both provide Bitcoin investment options to regular/institutional investors, and both have a history of gobbling up all available BTC, especially when it’s cheap.
Data from blockchain market insights provider Glassnode points to a trend that might be of particular interest to all Bitcoin bulls. The Canadian BTC ETF provider (the world’s first) has been buying every Bitcoin dip. Starting from May’s epic selloff.
Also Read: Are whales accumulating Bitcoin between $30K and $40K?
This has drawn the attention of prominent crypto industry influencers. For example, Casa co-founder and CTO Jameson Lopp couldn’t help but ask, “How many countries are going to have Bitcoin ETFs trading before the United States?”
According to the latest numbers, Purpose holds 21,114 BTC, which at current market rates amount to $737 million. Going by the firm’s current accumulation rate, it won’t be long until the value of its Bitcoin holdings crosses the $1 billion mark. But why is Purpose buying BTC left, right, and center?
Big Bulls: Hedge Funds, VCs
It seems hedge funds and venture capitalists are calm about the recent sell-offs. The former think Bitcoin and the aggregated crypto asset class could continue to be valuable for years to come. That’s why the majority of them have chosen to compulsorily allocate 7-10% of their investment portfolios to Bitcoin.
And the venture capitalist crowd is also going gung ho about the future of blockchain-based assets and companies. Private American venture capital firm Andreesen Horowitz’s latest “$2.2 billion Crypto Fun III” launch is a testimony to the above.
This gives the message that while institutional investors may have offloaded a part of their Bitcoin holdings to book profits, they are net bullish.
Bitcoin Long Term Technical Setup Is Strong
Bitcoin may have lost a significant portion of its value since achieving a high of $65,000 in April. But the crucial $29,000 support has still held firm amid the recent BTC price drawdowns.
A cryptocurrency trader and analyst who goes by the name of “Rekt Capital” aptly described the current long-technical setup of Bitcoin:
“Not only has #BTC successfully rebounded from its multi-week Higher Low… But $BTC is in the process of reclaiming its multi-month Higher Low, which has spanned the entirety of 2021…”
Relating the current market scenario with the US Dollar’s strength metric DXY (USD against top fiat currencies) and the recent Chinese miner selloff, analyst Kevin Svenson said:
“S&P500 hit new all-time highs today. The $DXY formed a lower high. Yet #Bitcoin is still struggling to make bullish moves. This is likely due to the China “Crypto Crackdown” / Miner Shutdowns. Miners likely selling $BTC to pay for expenses. Once that’s over, we likely go bullish.”
Also Read: Are Chinese miners behind the latest Bitcoin price crash?
As far as the current technical setup is concerned, Bitcoin has managed to break out of the bearishness by closing above the 20-day exponential moving average (EMA).
Bears seem to have run out of steam. Bulls stepped in and posted an intraday high of $35,335. Buying volumes are on the rise.
Now it remains to be seen whether the buying momentum can continue to rage on and whether BTC can rally and retest the crucial $41,000 resistance (marked by the 50-day MA wave).
