Bitcoin Signals an Institutional Takeover while Hitting An All Time High Till $125,000

Bitcoin’s October 5 jump to $125,689 marks a major turning point. Once seen as an alternate, or sometimes rival, to traditional finances, Bitcoin is now being firmly pulled into it by Wall Street. The $3.2 billion flowing into Bitcoin ETFs doesn’t really prove that everyday Joes are adopting Bitcoin instead of traditional currency, it signals that Wall Street is making an active play in the domain now.

The cryptocurrency’s rise no longer shows financial rebellion, but rather financial adoption. It is ironic that the institution Bitcoin once aimed to bypass now controls the narrative, the price, and the profit.

From Revolution To Regulation

Bitcoin’s Whitepaper promised a Peer-To-Peer electronic cash, free from institutional control. Yet, the latest rally tells an opposite story. Today, those same institutions are purchasing Bitcoin through regulated ETFs, custody solutions, and traditional brokerage accounts.

Just like traditional currency, its value is tied to interest rates and dollar trends, rather defiance of the state-backed money. The $2.45 trillion market cap establishes Wall Street’s skin in the game. Bitcoin did not defeat the banking system, it joined it.

Divergence OR Destiny?

Bitcoin’s institutional capture is not an isolated event, in fact it’s the gravitational pull of financial integration that other altcoins are feeling as well. Ethereum, once the symbol of decentralization through smart contracts, is also moving closer towards big institutions, with its proof-of-stake system that gives more control to large investors and staking groups.

On the other hand, if coins like Monero and Zcash are holding their grounds firmly, following their traditional anti-establishment ethos. Then their resistance comes at a cost in the face of regulatory hostility, exchange delistings, and declining liquidity.

Hence you haven’t seen any of these coins flourish as much as Bitcoin has just done. Whether through compliance, following regulations, or giving up control, the crypto revolution that started with open code now rests in the hands of big institutions.

A Sobering Truth

One should remember that Bitcoin “behaves in mysterious ways” and there are no tangible indicators or warrants to take an educated guess behind its movement. In their recent predictions, analysts have forecasted Bitcoin to hit $130,000 or $140,000. But these aren’t grounded in any real valuation. They’re just momentum guesses, dressed up as analysis, stemming from the phrase, “if current trends persist”.

Bitcoin has no earnings, dividends, or tangible fundamentals to measure against. In crypto, trends rarely persist. Sudden reversals are the rule and not the exception. Historically, the loudest bullish calls are usually followed by a tremendous fall that hits the hardest amid the ongoing peak of optimism.

The current rally gives the investors all the reason to celebrate, but how long will it last, who is to say?

Qaiser Sultan

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