- The supply shock caused by the recent halving keeps impacting Bitcoin price.
- As the scarcity increases, more billionaires are starting to buy BTC as they see it as an inflationary hedge.
- Technical indicators further support the bullish price action.
The last halving has undoubtedly caused a significant supply shock to the Bitcoin in circulation, leading to increased scarcity. It appears the race to own BTC is growing as more wealthy individuals want to have a piece of the pie, and the billionaires seem to be ahead.
The massive increase in buying pressure may push Bitcoin price further into a new all-time high.
Not everyone will have access to a full Bitcoin
Only 21 million Bitcoin can ever be mined, with the last few tokens scheduled to be put into circulation by 2140. Once all tokens have been mined, no more can be created due to the core economic principles of the network.
Thus far, roughly 18.5 million BTC have been minted, leaving less than three million for the next 120 years.
When taking into consideration that there are about 47 millionaires in the world, with a cumulative wealth of approximately $158.3 trillion, only a handful of wealthy investors may be able to add Bitcoin to their portfolios. Indeed, if they were to buy all the BTC, each one of these individuals would be able to only purchase less than 0.5 BTC, without counting all the lost coins.
I’ve said this before but it bears repeating. There are 46.8 million millionaires in the world. There are only 21 million #Bitcoin — less than half will ever be able to own 1 bitcoin. Don’t miss the revolution.
— Cameron Winklevoss (@cameron) November 17, 2020
Such a scenario shows the high levels of scarcity that Bitcoin possesses against any other asset, making it a very attractive store of value.
Billionaires flock into the cryptocurrency industry
Given Bitcoin’s deflationary model, interest is rising amongst some of the most prominent billionaires around the planet. Many of them believe that BTC will emerge as a hedging asset against inflation.
Hedge fund manager Paul Tudor Jones has even compared buying Bitcoin to investing in early tech stocks, like Apple and Google. This digital asset is going to be the best of inflation trades, according to Jones.
Along the same lines, the second-richest person in Mexico, Ricardo Salinas Pliego confirmed that he has 10% of his liquid portfolio in Bitcoin because it helps prevent his wealth from being eroded.
Other high-profile billionaires, like Bill Miller, are adding to the list of bullish investors as he allocated 30% of his $154 million fund into Bitcoin.
With the increasing attention on the flagship cryptocurrency amongst billionaires and its fixed supply, it seems like prices have more room to go up.
New all-time highs on the horizon
As buying pressure keeps building up, Bitcoin price may have the strength to slice through December 2017’s all-time of nearly $20,000.
The Fibonacci retracement indicator breaking above $19,892 could see BTC surge towards the next threshold at $24,451, which corresponds with the 127.2% level. But if the buying pressure is strong enough, prices may even rally towards the next potential area of interest around $30,000.
BTC/USD weekly chart
Regardless of the optimistic outlook, the 2015-2017 bull market reveals that Bitcoin tends to take steep nosedives before rising to new all-time highs.
It is imperative to pay close attention to the current price levels. Failing to rise above $19,892 could see a possible correction to $16,300 or $13,500. These price points tally with the 78.6% and 61.8% Fibonacci retracement levels.
View more information: https://www.fxstreet.com/cryptocurrencies/news/there-is-only-05-bitcoin-for-every-millionaire-in-the-world-but-these-billionaires-are-buying-them-all-202011192239