Bitcoin Experts Predict “Great Accumulation Race”, What It Means

The market dynamics have dramatically changed since BlackRock, the world’s largest asset manager, filed for a Bitcoin spot ETF. The move has triggered a surge in applications submitted to the US Securities and Exchange Commission (SEC). In a surprising twist, other major players like Invesco, WisdomTree, Bitwise, and Valkyrie have followed suit, reigniting the race for Bitcoin spot ETFs. Meanwhile, the price of Bitcoin continues its upward trajectory, leaving no room for doubt about its bullish momentum.

The crypto community is abuzz with speculation about the reasons behind this rapid surge. According to renowned figures in the industry, the “Great Accumulation Race” for Bitcoin has officially begun. In a recent interview with CNBC’s “Last Call,” Anthony Pompliano, popularly known as “Pomp,” unveiled his theory behind this accumulation phenomenon.

Drawing a parallel to the space race, Pompliano explained that nations competed to be the first in space. Similarly, the Bitcoin space is now witnessing a fierce competition triggered by BlackRock’s spot ETF application, effectively initiating the race. Pompliano revealed that institutions and individuals are vying to secure their share of the limited 21 million BTC that will ever exist. While retail investors have enjoyed a head start over the past 15 years, accumulating significant Bitcoin holdings, the tide is turning.

As Pompliano highlighted, 68% of all circulating Bitcoin has remained dormant for over a year, indicating a highly illiquid market. This challenges Wall Street giants such as BlackRock, Invesco, and WisdomTree, as acquiring Bitcoin becomes increasingly difficult. The result? The only way to balance the surge in demand for this fixed supply, highly illiquid asset is through a substantial price increase. The duration of this process remains uncertain, but Pompliano emphasized that the great accumulation race is well underway.

Cameron Winklevoss, co-founder of the Gemini cryptocurrency exchange, also supports this theory. Winklevoss took to Twitter, stating that the Great Accumulation of Bitcoin has officially commenced. He highlighted the narrowing window of opportunity to purchase pre-IPO Bitcoin before the ETF floodgates open, comparing it to the most obvious and best trade of the current decade.

Glassnode, a prominent blockchain analytics firm, further substantiated this narrative by revealing a sharp decline in highly liquid BTC supply during this cycle. The data shows a significant contraction in actively tradable supply, resulting in reduced liquidity and a constrained supply side. As a testament to the illiquid market, an astounding 69% of all BTC in circulation has remained motionless for over a year, a record high. Long-term investors are now focused on accumulation rather than selling, mirroring the conditions observed at the end of 2015 when the market entered a new bull run.

At the time of writing, Bitcoin’s price hovers around $30,133. Should Bitcoin surpass the yearly high of $30,972, experts predict that the price could surge toward the $32,000 mark, indicating a strong bullish sentiment in the market.

With BlackRock’s Bitcoin spot ETF filing igniting a frenzy of applications, the market is witnessing a monumental race to accumulate Bitcoin. Experts believe that the limited supply, combined with heightened institutional interest, will drive the price of Bitcoin even higher. Long-term investors and renowned figures in the industry are united in their belief that the Great Accumulation has commenced. As the market evolves, it will be fascinating to observe how this accumulation race shapes the future of the cryptocurrency landscape.