Flight to Quality Has Started

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In hindsight we are all so damn smart. But at least when all the signs are there in the open we can put two and two together.

Of course, we all expected the proper bull market to start sooner or later. And as always, the market needs a reason, solid or not, to enter the hype stage (one of them).

October, traditionally, is a positive month in crypto. November too. But after a bear market, we can see that for most people the slogan "flight to safety" related to bitcoin didn't catch to the masses, because they saw bitcoin plunge compared to the USD during the bear market and to them USD remains the base measurement unit.

So, we have a new slogan, one that is harder to contradict be sheer price evolution, nor is it attached to a notion of safety. The new slogan: "flight to quality" was coined about a week ago, by the CEO of... BlackRock.

Notice the difference in approach? "Flight to safety" appeals to everyone, because everyone needs to feel safe, it is one of our essential needs as humans.

Quality is different. If you are poor, you can rarely afford quality, only the cheapest things.

How many real Picassos do you have at home? That's one level of quality.

In other cases, quality is measured in how many times have you eaten this week and what?

So... flight to quality. This announces what we already knew. Real bitcoin will become much like tokenized real Picassos ("tokenized" because maybe you hold 100 satoshis, but not a full bitcoin).

"Flight to quality" much better identifies the target audience for the future holders of real bitcoins than "flight to safety".

Why Is the Crypto Market Pushing Upward So Hard Today?

Without some positive news on the BTC ETFs approvals front, I don't think bulls would have been convinced yet to break the 31k level which was a very strong support on multiple occasions. Not all past strong supports transform in strong resistances, though.

The news is that the BlackRock's Bitcoin ETF, iShares Bitcoin Trust, has been listed on the Depository Trust And Clearing Corporation’s website with the ticker iBTC.

The DTCC, which works closely with governments worldwide, is the corporation in charge of clearing NASDAQ trades.

So, BlackRock made this move even before their ETF is approved by the SEC and secured probably the best ticker for BTC.

What else surfaced?

Apparently, Gensler confirmed that the SEC is looking at 8 to 10 separate ETF proposals and talking with the companies behind them.

We have seen reports about updates of these proposals lately, which may be as a direct result of these talks.

Maybe these talks also convinced BlackRock their ETF will be approved. Or maybe they just wanted the first mover advantage to choose the ticker, and maybe to add some more pressure on the SEC.


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33 comments
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It's inevitable now, I think the ETFs will be approved, blackrock means business, and look at the how the hype created around them has caused some massive buzz.

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Absolutely! This buzz around Blackrock is created on purpose, and people like myself add to it. I should refrain myself, I'm not even a paid shill, lol.

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Everything seems to be happening very quickly now. Looks like BlackRock is ready and will be the leader in offering the ETF. Having 8-10 other ETF proposals is really good news and shows corporations don't want to be left behind. It feels like the floodgates are about to be opened. I can see how FOMO together with the ETFs can make the BTC price skyrocket. I just hope a lot of the altcoins like Hive surge as well.

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Yes, once the narrative changed from denial to 'let's work on it', everything became very clear. From now on, the market rightfully anticipates the approval of at least those 8-10 ETFs or most of them. About altcoins, they will probably lag behind at first, but then they will likely explode even more than bitcoin.

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Are we going to be seeing BTC hitting $40k soon, well it is quite possible

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There was some serious carnage last night as bears where decimated. That was an epic candle, I thought we were heading for the moonbase.

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Yeah, probably the bears expected 31k to be a tougher resistance, as did I. But being a bear in this type of market is highly risky.

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(Edited)

Yeah, that is a totally mad move. Now wasnt the time to be contrarian!

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Lol, nope! Luckily, I am an uncurable bull. Only take profits, that's my only contrarian view, on occasions. Or exit certain assets completely.

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Flight to quality like you said can't be achieved easily by the poor, likewise flight to safety as it requires some level of individual affordability of the amounts.

Btc surging isn't a new phenomenon particularly as this happens since the fake new hit the Internet like plague.

It is likely btc hit 40k before November ending.

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I agree, it's not the first time bitcoin surges. There is a difference though. In the early times of bitcoin, more people could afford full bitcoins but weren't interested, now more are interested but fewer can afford one bitcoin.

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I'm just happy about the bull run
We're going!

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(Edited)

Hahaha I think you asked about predictions sometime ago... Not sure how many of the predictions were accurate hehe! Of course, there's 2 more months to go till the end of 2023.

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Yep, mine wasn't either, lol. I thought we would be mostly flat until the end of the year (maybe November), when we would have a small bull run. But sometimes it's ok to be wrong!

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As big (or bigger?) as the Blackrock news, this caught my eye:

US Court confirms Grayscale ruling, says SEC must re-review bid for spot bitcoin ETF

Since the SEC chose not to fight against this any more (at least that is what is being reported), it is over. At long last ... As a "means of last resort," at least some of our courts are still somewhat sound ...

The carryover effect of this ruling to Blackrock and all of the other (8 to 10) ETF filings is considerable.

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This is just a procedure. The action ended when the SEC didn't fight it about two weeks ago. But technically, the SEC can still say no. In reality, it is very unlikely the SEC will say no to any of the major ETF proposals.

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Good to hear the phrase Flight to Quality. Just as we all need quality in our lives, the crypto market is no exception. Thanks for sharing a nice topic.

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On Hive, we would say quality is subjective, so I don't know, lol.

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I also agree with You. And no doubt we are all waiting for the proper start of bull market.

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The inevitability of Bitcoin spot ETFs has brought a much needed positive impulse into the crypto market. Flight to quality resonates with many people because it can stand the test of time while also being sustainable.

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Flight to quality resonates with many people because it can stand the test of time while also being sustainable.

That's a very good point! Quality is often sought for its durability or sustainability and that might attract more people. Bitcoin is the original, the oldest, and the most resistant to change protocol (at the base layer) which are qualities some will seek out. Plus a great investment, it has been proven so far, in the long term.

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Indeed! Bitcoin is prime quality as an investment and I think it's one of the main reasons why institutional investors are going big on it.

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I didn't realize that Blackrock already listed their ETF without it being approved just yet. I guess they have some news that it should be approved soon.

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It's not only BlackRock here. I suppose the DTCC doesn't just list any ticker anyone wants. They also are convinced at least Blackrock's ETF will go through.

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Too fast too furious! Hopefully the bull will arrive

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Yep. It calmed down a bit, which is great, in my opinion.

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Smart people have been buying bitcoin for so long now and we all know it and now that it's gone up the rest of us are saying we wish we had bought it at 25k.

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We had plenty of time to buy more at 25-26k if we wanted to. Bolder (and more profitable) was to buy around 16k.

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That's right, they are now regretting why we didn't buy it at 16,000.

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