Rumors are circulating that the governments of Saudi Arabia and Qatar may be about to make a monumental move into the Bitcoin market. According to recent information, these countries are considering the acquisition of approximately one million BTC, a volume that compares to the wallet address of Satoshi Nakamoto, the anonymous creator of Bitcoin.
This rumor gained strength after statements by Justin Verrengia, a well-known presenter on the CryptoNewsAlert channel. Verrengia suggests that such a massive investment, possibly using large sovereign wealth funds, could be announced as early as next week. This speculation follows the comment of influential Bitcoin maximalist Max Keiser, who highlighted the potential magnitude of this investment compared to those made by giants such as BlackRock and MicroStrategy.
An interesting aspect of this narrative is the recent statement by a Saudi cleric, who considered Bitcoin acceptable under the laws of Islam. This pronouncement appears to have paved the way for greater acceptance of Bitcoin in the region. Additionally, Saudi Arabia’s oil giant Aramco has been exploring partnerships in the digital asset space, including a possible deal with SBI Holdings. These developments are seen as possible catalysts for the appreciation of Bitcoin.
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Saudi and Qatari investment reflects growing institutionalization of Bitcoin
Meanwhile, another report indicates that Qatar may be planning to allocate around $500 billion from its sovereign wealth fund (SWF) into Bitcoin. This information highlights the growing institutionalization of Bitcoin as an investment asset. This comes especially after the launch of the Bitcoin exchange-traded fund (ETF) in the United States on January 11.
Despite the growing interest in Bitcoin, its market performance has become volatile. After reaching highs of US$48,000 followed by the approval of the ETF, the price fell, reaching lows of US$40,000. Currently, Bitcoin is trading at around US$40,735, according to data from CoinMarketCap.
If confirmed, these moves by the governments of Saudi Arabia and Qatar could represent a significant shift in the cryptocurrency landscape, demonstrating a growing acceptance of Bitcoin as a store of value asset by large state entities. However, cryptocurrency market watchers are eagerly awaiting further developments, which could have a substantial impact on the value and perception of Bitcoin globally.
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