Bitcoin and the broader cryptocurrency market have had their worst month since June 2022 in November, but this price drop strikes as an opportunity for some: As long as BlackRock, Fidelity and other asset managers push exchange rates lower and lower with billions of sales, there will be investors who take advantage to lower their average price and increase their bitcoin holdings.
For example, Cardone Capital, a global real estate investor, recently purchased 185 bitcoins, taking advantage of the 30% drop from its all-time high. According to the latest information, including the latest purchase, the company already has almost 900 BTC, which is equivalent to almost 25 billion HUF when converted into HUF.
The real estate investor diversifies
Cardone Capital enjoys special recognition in the real estate investment scene at a global level, and in order to maintain its diversification, the company has in recent years combined real estate investments with investments in digital assets, expanding their product range and potential range. Over the past five years, the company has provided investors with an annual return of around 20%, while in 2020, for example, there were people who sued the company because of the overpromise of returns.
Now the company has bought another 185 bitcoins (BTC) after the price briefly fell to $80,000 yesterday before suddenly recovering. In the end, the purchase amounted to 15.3 million dollars, which amounts to five billion forints converted into forints. According to October reports, the company had more than 500 BTC, and thanks to smaller purchases since then, it has approached the stock of 900 BTC, equivalent to almost HUF 25 billion.
Since the first major purchase, Grant Cardone, the company’s founder, has repeatedly said that it is not speculation:
“This is not speculation, but strategic accumulation of bitcoins, funded by stable income-generating assets. We count on the leading cryptocurrency for the long term.”
– said the first person from the company.
Institutional sell-off versus accumulation
While Cardone Capital and Strategy continue to increase their bitcoin holdings, the world’s leading asset managers are constantly experiencing net outflows: while there were positive inflows on Friday and Wednesday, on Thursday, for example, $900 million in capital flowed out of assets, and in November, bitcoin exchange-traded funds closed positive only five times in fifteen trading days – although on November 10, inflows were only $1.2 million.
These institutional investors sell their bitcoins primarily to make a profit or to provide liquidity, putting significant short-term selling pressure on the market. The sell-off paints the picture that while institutional investors are more cautious due to the risks, other market players prefer to take advantage of the recession as a buying opportunity.
“In the institutional sector, liquidity needs and recalculation of positions lead to selling, especially in an uncertain market environment.”
Global influences and strategic differences
This opposite attitude could upset several bitcoin investors and the dynamics of the entire market: while institutional investors focus on short-term profit and volume, treasury companies aim for long-term accumulation – regardless of how much the assets cost.
This balance between institutional pressure and the government bond buying spree could even stabilize Bitcoin’s price and strengthen its institutional adoption in the near future. This clearly shows that the leading cryptocurrency is playing an increasingly important and complex role in the financial world, which is being noticed not only by gray zone ‘businessmen’, but also by companies and governments.
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