The Largest Bitcoin Onboarding Event Ever: How 200 Million People Are About to Gain Bitcoin Exposure | joincrypto.online

Introduction

On Friday night, only a few hours after the market closed, significant news emerged for Bitcoin. It is some of the most monumental news we’ve seen in months, if not the entire year. This event involves a massive global adoption step for Bitcoin, potentially bringing exposure to around 200 million people worldwide. Here, we break down the details, why this matters, and what it could mean for Bitcoin investors.

Table of Contents

1. Overview of the Major Bitcoin News

2. Breakdown of Recent Market Activity

3. The Inclusion of MSTR in the NASDAQ 100

4. What This Means for Bitcoin Adoption

5. Potential Market Impacts

6. FAQs

7. Conclusion

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1. Overview of the Major Bitcoin News

The major news revolves around MicroStrategy (MSTR) being added to the NASDAQ 100 index. This isn’t just a minor development but an enormous step forward for Bitcoin adoption globally. With MSTR’s inclusion, hundreds of millions of investors who hold NASDAQ 100-related ETFs or financial products will indirectly gain exposure to Bitcoin.

The process will officially take effect on December 23, 2024, when NASDAQ rebalances its index. As a result, approximately $2 billion will flow into MSTR, making this a groundbreaking moment in Bitcoin’s history.

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2. Breakdown of Recent Market Activity

Before diving into the implications of MSTR’s NASDAQ inclusion, let’s take a quick look at the recent Bitcoin market activity:

• GBTC Outflows: There was a notable outflow of $106 million.

• BITB and ARCB Inflows: These saw inflows of $33 million and $28 million, respectively.

• FBTC and IBIT: IBIT had an impressive $400 million inflow in a single day.

Collectively, these transactions indicate a net inflow of $400 to $500 million into Bitcoin markets. Such substantial inflows suggest growing confidence and excitement among investors, especially with the news of MSTR’s NASDAQ 100 inclusion.

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3. The Inclusion of MSTR in the NASDAQ 100

The inclusion of MSTR in the NASDAQ 100 means that every fund or financial product tracking this index will allocate a portion of its holdings to MSTR. Here’s why it matters:

• Widespread Exposure: Around 200 million people globally hold exposure to NASDAQ 100-linked products, according to estimates. These products include ETFs like QQQ and mutual funds.

• Indirect Bitcoin Allocation: With MSTR’s heavy focus on Bitcoin, these investors will now indirectly own Bitcoin through their MSTR exposure.

• Market Activity: An estimated $2 billion will flow into MSTR’s stock, boosting its market cap. The knock-on effect is that MSTR will likely use these funds to purchase even more Bitcoin, amplifying the effect.

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4. What This Means for Bitcoin Adoption

This development represents a Trojan Horse-like adoption mechanism for Bitcoin. Unlike direct adoption through individual wallets, MSTR’s inclusion in a major index allows passive investors to gain Bitcoin exposure seamlessly. Key implications include:

• Massive Onboarding: An estimated 200 million new individuals gaining Bitcoin exposure simultaneously.

• Long-Term Impact: Passive investment products linked to NASDAQ 100 will continuously funnel capital into MSTR, indirectly supporting Bitcoin.

• Precedent for Future Adoption: Similar moves could happen with other indexes, such as the S&P 500, further accelerating Bitcoin’s global adoption.

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5. Potential Market Impacts

The inclusion of MSTR in the NASDAQ 100 is expected to have significant market repercussions:

• Increased Market Cap: MSTR’s market cap could see an exponential increase, potentially driving its share price into the $800 to $1,470 range.

• Higher Bitcoin Demand: As MSTR allocates more capital to Bitcoin purchases, the demand for Bitcoin will rise, potentially driving up its price.

• Portfolio Diversification: Investors in NASDAQ 100 products will see the benefits of Bitcoin’s historically high returns as a small allocation boosts overall portfolio performance.

• Bitcoin’s Price Trajectory: Analysts predict Bitcoin could move to $125,000 or higher, driven by this surge in demand.

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6. FAQs

Q: Why is MSTR’s inclusion in the NASDAQ 100 so significant for Bitcoin? A: It allows indirect Bitcoin exposure to millions of investors who hold NASDAQ 100-related products, significantly broadening Bitcoin’s reach.

Q: How many people are expected to gain Bitcoin exposure? A: Approximately 200 million people globally, based on current estimates of NASDAQ 100 investors.

Q: What could this mean for Bitcoin’s price? A: With increased demand driven by MSTR’s purchases and indirect exposure, Bitcoin’s price could rise significantly, with predictions reaching $125,000 or higher.

Q: Is this a one-time event, or will it have long-term effects? A: This is a long-term event, as passive funds tracking the NASDAQ 100 will continue to allocate capital to MSTR, creating sustained Bitcoin demand.

Q: How does this compare to other Bitcoin adoption events? A: This is likely the largest single onboarding event for Bitcoin, both in terms of scale and the number of people involved.

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7. Conclusion

The inclusion of MSTR in the NASDAQ 100 marks a pivotal moment in Bitcoin’s adoption journey. By bringing Bitcoin exposure to approximately 200 million people globally, this event accelerates its mainstream acceptance and solidifies its position as a core asset in financial markets. Whether you’re a seasoned investor or new to the crypto space, this development underscores the growing importance of Bitcoin in today’s financial landscape.