John d'Agostino, Coinbase Institutional Strategy, appeared in the Squawk Box Show in CNBC to discuss Bitcoin and institutions that recently buy it.
The investor of VC Anthony Poseliano published an article on this subject on X. Poseliano was enthusiastic about what D'Agostino said about the great institutional players accumulating Bitcoin. He commented that it would have been unfathomable only 2-3 years ago “.
Bitcoin price exceeds $ 94,000
The host, Andrew Sorkin, asked at the Top Executive Coinbase on what stimulates the current Bitcoin growth. On Wednesday, the BTC reached a local daily summit of $ 94,510 after having increased by 3.67% in the previous 24 hours and after adding 6.68% compared to the previous two days, in which harnessed $ 88,570.
Commenting on the factors that currently stimulate the price of Bitcoin, of Agostino first talked about the bitcoin and stock market coupling. He described it as a negative and positive correlation of BTCs and actions. A negative occurs when the panic market said the executive, and positive when the market flowers. No one takes care of a positive correlation, he said.
As for the current Bitcoin growth engines, Agostino clearly indicated that the situation they examine is in the short term and everything could change next month, for example. In addition, he said that a similar set of tail winds in another period of time could trigger a different reaction of bitcoin than it shows now. And this also involves gold and any other assets on the market.
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“Bitcoin reflects the characteristics of gold”, believe traders
Currently, financial institutions believe that due to prices, world trade should be strictly limited and cope with a massive drop. And a large part of this business is labeled in US dollars. Therefore, the dollar demand will dive. D'Agostino described this as “denollarization”.
These financial institutions, such as sovereign funds, large insurance pools, etc., bought bitcoin, then sold them for Fiat when they need them. But if they believe that the dollar will weaken, when you stop converting the BTC to Fiat, then they continue to buy bitcoin to hold it.
D'Agostino has also mentioned that many traders are now beginning to believe that Bitcoin is one of the few active people who reflect the characteristics of gold and begin to buy it when the markets become unstable.
