Possibly one of the reasons bitcoin bounced hard from a selloff yesterday and is now all time high again over $35K Bitcoins are being withdrawn from exchanges based on many reports of people watching the blockchain which is a public ledger https://decrypt.co/53200/one-river-makes-one-of-the-largest-cryptocurrency-trades-in-history One River Makes One of the Largest Cryptocurrency Trades in History One River Asset Management has made one of the largest ever cryptocurrency investments, according to crypto exchange Coinbase. By Tim Copeland 2 min read Jan 5, 2021 One River has worked with crypto exchange Coinbase to invest an undisclosed amount in cryptocurrency. According to Coinbase, which carried out the transaction, its purchase represents “one of the largest digital asset trades in history.” The initial trades were executed over a five day period at different speeds, in order to work through varying market conditions, the exchange explained. FYI, Coinbase outflow on Jan 2 was an all-time high. It seems institutions bought $BTC when the price above 30k.$BTC bull market isn't over. “The Coinbase institutional team provided exactly what we needed to execute this transaction discreetly,” said Eric Peters, CIO of One River. Before this was announced, speculation had been building over growing institutional activity at Coinbase. Market observers have noted large amounts of Bitcoin being withdrawn from the exchange, suggesting institutional holders buying Bitcoin and withdrawing to long term storage. On January 5, Cryptoquant CEO Ki Young Ju noted that 55,000 Bitcoin left the exchange on January 2. It is unknown whether One River's purchase was part of this big increase in withdrawals. The case for cryptocurrency One River recently made its case for cryptocurrencies in a post on its website, entitled "The Case for Digital Assets." In the post, Peters put forward a long term view that cryptocurrencies are the technology of the future. "Owning these assets is a mere toehold to the future, a deposit on the view that everything we know about financial intermediation and its relationship to centralized policy will change in ways we cannot yet foresee," Peters said. "Holding these assets over the long-term aligns yourself with the macro mega-trends of technological advance and currency debasement, both of which appear to be accelerating. And naturally, where this all leads, and to what valuations, will be determined by our collective imagination," he added.
You can tell there's something wrong in a market when institutions have to, constantly, pump funds to keep the price afloat. Even JP Morgan started to send marketing campaigns out in favour of bitcoin. They are not getting what they planned out of it and need more Tethers to keep the rally. Just in this year, in 6 days, they are in the range of billions already. It is a great time for retail traders to cash out and let them eat each other there. Never ever forget that to win , someone has to lose. And that's usually the small fish. Let the whales bite each other, let's see how long they keep it running.
Unpopular opinion: The price of bitcoin is cheap when taken in the context of a market cap. Retail buyers see $35K per bitcoin and say it's too high, maybe when it goes back to $10K or $1K, they will buy some. Institutions see $35K per bitcoin and see market cap of less than $700B for a new emerging digital asset that cannot be debased by central banks and they see a bargain, they want to buy as much as they can. https://elitetrader.com/et/threads/bitcoin-price-thread.315402/page-274#post-5278149
That's a legit argument. Well, it is time to step back and let institutions buy it. You guys had a good run, how about to wait for it to drop and buy again? Do you think that they will keep buying if retail guys don't? Who are they going to suck from?
Forgive me if I misunderstand your question. Are you saying sell now and buy back later? Speaking for myself, I suck at timing, and 2, selling now for $ is a taxable event and to time the dip is not so easy. I have 2 posts explaining my position on this when I went to full hodl mode end of October 2020 and reiterated my view that it's better to follow Jesse Livermore's advice during the bull market to sit tight and not sell and cut profits too soon. In addition, I'm a bitcoin/crypto nut, so I'll be a hodler forever, pretty much, only selling what's needed for life's purpose here and there. For people that are not into cryptos, I do have a question for you, have you wondered why the Institutions are in such a frenzy buying bitcoin (and sometimes Ethereum) right now and being open about it and just pushing bitcoin price to over $37K without any concerns price is too high? I watch too much cryptos believers but the word on the (wall) street is that UHNW are screaming at their PM's on why they're not on bitcoin or not enough. As the price goes up, the yelling gets louder, described as a reflexive loop (credit to Raoul Pal). Can you imagine running a hedge fund and you have no exposure to bitcoin and having to explain that to your investors who are constantly bombarded every day in the news about this bitcoin price that seems to keep hitting all time high's every day or week? RIA's nationwide are already discussing allocation strategies for bitcoin (credit to Raoul Pal, again). When bitcoin hits $55K ($1T market cap), there are even more pension funds that will pile in. Retail traders have this rare opportunity to front run those guys. Speaking for myself, I'm sitting on massive $ value gains and I have no added worries that bitcoin/cryptos will crash. When it pulled back $6K yesterday, it did not trigger a panic even though it meant losing over $100K pfolio value at the time. I felt confident it would go back up in a few days, but was surprised it took less than 24 hours. https://elitetrader.com/et/threads/defi-going-bankless.349553/page-9#post-5235363 https://elitetrader.com/et/threads/bitcoin-price-thread.315402/page-273#post-5276229