Why Bitcoin Is Gaining Major Favor Among High Net-Worth Investors Right Now.

David Siemer, CEO of Wave Digital Assets, recently highlighted the increasing disparity between traders’ and high-net-worth individuals’ perspectives on the crypto market. As bitcoin (BTC) fluctuates between $90,000 and $95,000—more than 10% down from its recent all-time peak—there’s a notable divergence in sentiment. Traders, using technical analysis, are predicting further price declines, while long-term investors are maintaining a positive outlook, believing that the bull market is far from over.

Siemer, whose firm serves prominent clients like Cardano CEO Charles Hoskinson, noted that such a divide is unprecedented in his 14 years of owning bitcoin. “I’ve never seen a situation like this,” Siemer remarked. “Traders are hedging, feeling neutral or bearish, but the long-term holders are all exceptionally bullish.”

Siemer himself is optimistic about bitcoin’s potential, forecasting a possible rise to $200,000 per bitcoin within the year. “Do I think bitcoin will reach $1 million in my lifetime? Absolutely,” he said, adding that the timeline may not be as soon as many expect. “The next six months will see more developments than most people anticipate,” he added, referring to the growing crypto adoption in various global markets.

Countries such as the U.S., Russia, Singapore, Japan, South Korea, the UAE, and some European nations are preparing to implement crypto-friendly policies, a trend Siemer believes will positively impact their private sectors. He also pointed to the trust citizens in these countries have in their governments, which bolsters confidence in regulatory approval for crypto.

The surge in popularity of U.S. spot bitcoin exchange-traded funds (ETFs) has prompted financial institutions worldwide to innovate new crypto-related products to compete. Siemer explained that these ETFs have disrupted global markets, particularly those with high-fee bitcoin exchange-traded products (ETPs). “The ETFs in the U.S. obliterated the existing bitcoin ETPs,” he noted.

On the regulatory front, Siemer is optimistic that regulators will adopt supportive measures, particularly in the EU, where MiCA (Markets in Crypto-Assets Regulation) is expected to evolve into a more crypto-friendly framework. Additionally, he sees a high likelihood of new strategic bitcoin reserves being established by countries other than the U.S., especially as states like Texas, Ohio, and Wyoming are already exploring the creation of their own reserves.

Siemer also discussed the possibility of the U.S. federal government establishing a bitcoin reserve, although he believes the odds are slightly above 50%. “The U.S. already holds nearly $19 billion worth of bitcoin,” he said. “They don’t need to buy more, they just need to hold what they’ve got. It’s a far easier pill for taxpayers to swallow than buying an additional $10 billion in bitcoin.”