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KPMG greenlights Bitcoin, now heading towards $32,000

Updated: Aug 31, 2024
Published: Aug 14, 2023
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The world is burning up, but that’s not Bitcoin’s fault.

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Haters say Bitcoin consumes as much energy as a small country, but they conveniently forget to mention that it would be the greenest country in the world.

And speaking of green assets, analysts at KPMG just gave institutional players one more reason to love Bitcoin.

Why is this bullish for your portfolio?

Let's find out.

TLDR 📃

  • KPMG study shows BTC has positively affected the environment and awards it an ESG ranking.
  • In contrast, a study says most other ESG assets are actually terrible for the environment.
  • BTC open interest explodes, indicating institutions are buying loads of derivatives.
  • 69% of BTC supply has been dormant for a year, indicating hodlers are not selling.

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KPMG proves BTC benefits the environment 🌱

Analysts at KPMG just released the battle cry, rallying investors around Bitcoin. 

How’d they do it? By proving Bitcoin is a huge benefit to the environment.

Institutions care about the environment, and this sentiment influences where their money goes. They use ESG rankings to assess an asset’s sustainability and ethical impact. A high ESG ranking signals the asset's long-term viability and reduced risk exposure. 

The only other token to get such a positive ESG score is Ethereum, but that was from a report by CCData. KPMG hasn’t commented on ETH; they clearly favour Bitcoin.

Interestingly, another study suggests that most other assets with a seemingly high ESG ranking are actually bad for the environment. Those assets only score highly on the two “SG” sustainability and governance metrics while being poor on the “E” metric for the environment

Beyond being green for the environment, Bitcoin also scores big on other “ESG” metrics. Therefore, regarding how ESG ranking influences decisions, Bitcoin is the obvious winner.

Investors aren’t shorting BTC; they’re going long 📈

Institutions got the memo, and now, open interest in BTC has exploded. Open interest is the value of bets that institutions place on whether the price of an asset will go up or down.

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With Bitcoin, the bets are extremely one-sided – leaning towards increasing BTC prices. This week, Coinshares released a study showing investors have stopped shorting Bitcoin. This behaviour even extends to BTC-related assets like GBTC too. 

Some institutions don’t think placing bets with derivates is enough; they are buying up the real thing. SoFi Bank revealed a $82 million position in BTC on its quarterly earnings. This purchase is huge; it’s almost as much BTC as Microstrategy and Tether combined acquired in the same period.

BTC hodlers aren’t selling; a boom is coming soon 🧨

Nobody wants to sell their BTC, but everyone’s getting ready to buy in

Do you know what that means? Bitcoin is about to explode. 

Just look at the chart below that shows the supply of BTC that’s not moved in a year.

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On top of that, the number of addresses with 1 whole Bitcoin just topped 1 million for the first time. Good luck getting people with 1 BTC or the 4 million addresses with 0.1 BTC to sell their tokens! 

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The bets that Bitcoin’s about to boom are completely reasonable: demand for BTC looks ready to soar, but the supply is digging trenches, getting prepared to go nowhere but up.

Price analysis 📊

You might hear bearish whispers concerning BTC's price, but we are here to clear the air

Last week, we saw Bitcoin bouncing from $28,750, a level we've marked as "bottom-making". Simply put, we predicted this was the bottom, and again, we’ve nailed it in our usual pattern.

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BTC has a clear path toward $32,000 (and above). The only requirement for more upside is holding $28,750 as support. If that's lost, the possibility of more upside diminishes - at least for a while.

However, we expect this week to be green, so you better enter the store - it's shopping season. 

Cryptonary’s take 🧠

Institutions have just received all the validation they need to accumulate BTC, and they’ve already started

A rallying Bitcoin is good for the broad crypto market. The only concern is the lawsuit against Binance, but we discovered that regulators are considering lesser charges to keep the peace.

The reasons to invest in Bitcoin are rapidly growing, far outweighing any reasons to avoid it. And as soon as the final hesitation is thrown out the window, Bitcoin, the latest green asset, will have the massive green candle it deserves.

As always, thanks for reading! 🙏

Cryptonary, out!

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